STOCKWATCH: China Mobile higher on technical rebound, price war worries remain

HONG KONG (AFX-ASIA) - China Mobile (Hong Kong) Ltd shares were sharply higher in late morning trade on a technical rebound in line with the overall market, but concerns about a price war in China's mobile phone market are expected to continue to affect the counter after the gains, dealers said.	    At 12:14 pm, China Mobile rose 1.30 hkd or 3.90 pct to 34.60 hkd on volume of 10.87 mln shares.	    The Hang Seng Index was up 221.87 points at 12,805.23 on turnover of 4.85 bln hkd.	    Ben Tam, an analyst with Dao Heng Securities, said buying intensified in China Mobile in late morning trade following the rebound on NASDAQ Friday.	    "Some investors are expecting China Mobile will report satisfactory results early next month on its increased subscriber base," Tam said.	    Tam said when taking out the effect of an acquisition of seven mobile phone networks from its parent in October, the number of China Mobile's subscribers increased to 26 mln as of the end of December 2000 from 21 mln as of the end of June.	    "The growth is impressive," Tam said.	    After including the seven new networks, Tam said the number of subscribers is estimated at 50 mln at the end of 2000.	    However, Tam said concerns about a price war in China's mobile phone market remained in place.	    "Rival China Unicom will report its results next week. The market has expected China Unicom will formally announce its new tariff rates to compete with China Mobile," Tam said.	    Tam said he expects some technical resistance for China Mobile around 35-35 hkd.	    China Unicom was up 0.25 at 9.10  

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