Shares in mainland operators surge as long-awaited restructuring nears
Mainland mobile-telephone operators, whose shares have surged in the past month on rumours that a long-awaited restructuring will go ahead as early as next summer, have had their price targets raised by leading banks and brokerages.
CLSA, JPMorgan and Citigroup all stated that the telecommunications sector restructuring was more likely to take place as early as March or April next year. All emphasised that mobile players would remain a growth engine as consumers make the switch from fixed-line links.
A restructuring of the mainland telecommunications sector - expected to cut the number of operators to two or three from the present four - has been rumoured for over two years.
Any shake-up has been considered likely to prefigure an issue of licences for third-generation mobile phone networks. China Mobile, the largest mobile operator, has indicated that it expected the licences to be issued before the Beijing Olympics next August.
All operators surviving after the restructuring are expected to be able to provide both fixed-line and mobile services.