China Unicom is rumored to raise far less than US$10 bln

It is reported that China Telecom will try to be listed in Hong Kong market in September, but the capital to be raised would be reduced by over 60%, far below the forecasted HK$78 bln (circa US$10 bln) level, even below the raised capital of HK$32.8 bln by China Mobile (0941) in 1997, when it was first listed. The reasons are concerned with the authority spinning off the fixed network company into several district groups.China Telecom formerly planned to spin off the fixed networks in the four provinces of Guangdong, Zhejiang, Jiangsu and Shandong and the two municipalities of Beijing and Tianjin. But now the situation has changed. The listed business would be surely reduced and it all depends on the results of negotiations with National Planning and Development Commission, reported by sources. 

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