INVESTMENT BANKS ARE again circling Beijing, ready to package some prime state-owned telecommunications assets for investors. This time it is the northern half of the country's fixed-line network being put on the block - with the best bits of regional monopoly China Network Communications Group (CNC Group) due for inclusion in a listing vehicle.
But investors have developed a more discerning palate for mainland telecoms plays since China Mobile first listed in 1997. They know that it is not the credentials of the company that count, as the regulator is the kingmaker.
Like any regulator, the Ministry of Information Industry has a thankless task. It must juggle various prerogatives including securing the best price for state assets, building an internationally competitive industry and providing cheap services to hundreds of millions of mainland consumers.
Competition has been enhanced by a handicap system which favours each new entrant to the mobile and fixed-line sphere. After all, the government cannot get top dollar for a new company if it is habitually trounced by the incumbent. But neither have investor interests been at the front of the queue.
So far, the authorities have done a good job selling state telecoms assets, raising billions of US dollars from equity investors and fat fees for bankers.
As was the case with China Mobile, China Unicom, China Telecom and now CNC, assets are divided into bite-sized morsels for investor consumption. After the initial public offering, subsequent provinces are groomed for later injection into a Hong Kong-listed vehicle.