Aug 24, 1:12 am HK stocks off 2.3%, China telcos tumble -->
(UPDATE: Adds midday closing levels)
HONG KONG, Aug 24 (Reuters) - Shares of China's leading wireless carrier China Mobile plunged on Friday to their lowest levels since September 1999,
dragging Hong Kong's benchmark index to a fresh 28-month low.
The blue chip Hang Seng Index (^HSI - news) lost 2.31 percent, or 261.81 points, to 11,083.57 by the
midday break.
China Mobile dropped 7.51 percent to HK$24.0, and its rival China Unicom slipped 6.28 percent to
HK$9.70, heaping further pressure on the index.
The counters were under pressure on persistent worries over the uncertain outlook for the Chinese telecoms
sector, analysts said.
The cellular carriers' branches have begun offering one-way billing in Shandong province, renewing concerns
about dramatic changes to mobile phone biling in China.
Currently both the caller and receiver pay for mobile phone calls in most of China, and investors worry that
changing that to a calling-party-pays system would seriously hurt revenues at both firms.
But shares in tycoon Li Ka-shing's flagship companies Hutchison Whampoa and Cheung Kong held firm despite posting a sharp plunge in interim net profits.
Ports-to-telecoms conglomerate Hutchison rose as much as three percent shortly after the open, but pared its gains by the midday break. The stock was unchanged
at HK$66.75.
Property giant Cheung Kong was up 1.82 percent at HK$70, off a high of HK$70.75.
Much of the negative news on the interim earnings had already been factored in and there was limited downside in the share prices, analysts said. |
