Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: John Biddle who wrote (28981)	11/15/2002 11:52:14 PM
From: John Biddle	Respond to of 197035

China Telecom's debut a damp squib By Alex Frew McMillan Friday, November 15, 2002 Posted: 0853 GMT europe.cnn.com China Telecom slipped as it started in New York and Hong Kong, despite halving the size of its offering HONG KONG, China (CNN) -- China Telecom had a damp debut on the Hong Kong market on Friday, failing to take part in a broad market rally. China Telecom shares closed down 2.04 percent from their initial public offering price of HK$1.47. That contrasted with a solid 1.28 percent gain for the Hang Seng index, which ended at 9,865.65 on a very strong day for Asian stocks. (Full Asian roundup) Telecom's fall in Hong Kong also comes on the heels of a disappointing start to its listing on Wall Street. China Telecom shares fell 5 percent to close at $18.00 in New York, where it was the fifth-largest stock debut of the year. The company was forced to postpone its debut by a week. Poor institutional demand for its shares also caused it to slash the size of the total offering by more than half. Plans to buy networks It raised a total of around $1.43 billion (HK$11.2 billion) in the offering, with the company likely to buy more networks from its parent with the proceeds. Five percent of the offering went to retail investors in Hong Kong, who got a slight discount, with the rest going to institutions such as mutual funds. Merrill Lynch, Morgan Stanley and China International Capital Corp. underwrote the offering. Chinese authorities were determined to push ahead with the stock sale, despite a bear market for telecom shares and a slump in global economic activity worldwide. China is selling off stakes in many of its biggest companies as they prepare for industry reforms and greater openness to overseas competition under World Trade Organization rules. Other telecoms trading up China Telecom held a monopoly over phone calls in China until the mid-1990s. But regulators have moved to create four telecoms, all of which ultimately intend to compete on mobile phone and fixed line calls. To make the contrast with China Telecom clear, the two other China telecom plays listed in Hong Kong saw strong gains on Friday. China Unicom, the country's No. 2 cell-phone player, raced ahead 6.31 percent to close at HK$5.90. It was boosted by word it plans to buy nine regional networks from its parent, expanding its customer base 36 percent. China Mobile, the mainland's largest cell-phone service, ended the day up 3.89 percent to HK$20.20.