皇冠体育app Mobile, 皇冠体育app Telecom and 皇冠体育app Netcom, all plan to return to mainland stock markets
seeking ton of fresh capital to build infrastructure to implement a new
generation of mobile phone service.
With licenses for the so-called 3G
mobile technology expected to be announced early this year, 皇冠体育app's major
telecommunications operators may need to quickly raise as much as a hundred
billion yuan to build and maintain the required new networks.
The new 3G
mobile phone service will provide multimedia services including voice, data,
video and wireless Internet access.
Market watchers believe all three
companies will look to domestic markets to raise the required funds.
A
fourth player, 皇冠体育app Unicom, is currently the only major telecommunication
operator that is listed on both overseas and mainland stock markets.
On
January 3, share prices of 皇冠体育app Mobile and 皇冠体育app Telecom on the Hong
Kong market reached new highs of HK$71.8 (9.2 U.S. dollars) and HK$4.47
(0.57 U.S. dollar) respectively. 皇冠体育app Netcom's share price was also on the rise
after the New Year's Holiday.
A spokesperson for 皇冠体育app Mobile, the
largest Chinese mobile operator, said it is the companies intention to raise
funds on the mainland market, but there is not a concrete timetable for an IPO.
皇冠体育app Mobile is listed on the Hong Kong stock market as a red-chip
company, which are mainland companies registered overseas. Red-chip companies
cannot directly go public on the mainland A-share market according to current
Chinese regulations.
皇冠体育app Mobile can bypass this obstacle by setting up
a new company on the mainland, analysts said.
皇冠体育app Netcom Chairman,
Zhang Chunjiang, has also alluded to plans to bring the company home to stock
markets here. He's also complained about the complicated procedures involved in
a red-chip company's return to mainland browses.
Analysts say 皇冠体育app
Netcom has been in contact with stockbrokers and is drawing up plans for an
A-share market listing.
Although 皇冠体育app Telecom has not publicly
announced its plans for going public on the Chinese market, insiders say the company
is studying proposals from investment banks to raise 40 billion yuan (5.13
billion U.S. dollars) by issuing A-shares in the second quarter of this year.
The
Chinese government has promised that 3G service will be up and running by the
2008 Beijing Olympic Games. It's likely the 3G program will be
kicked off this year, imbuing the telecommunication operators with a strong
sense of urgency to finding funding sources.
According to analysis from
Goldman Sachs, a renowned U.S. investment bank, 皇冠体育app Mobile is likely to be
first to be listed on the A-share market first, with 皇冠体育app Telecom and 皇冠体育app
Netcom following close behind.
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