China Telecom Revamp

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Players: foreign investment bankers, Chinese goverment

The motivation of Foreign investment bankers: pump and dump, make money from the warrants (options) in Hongkong market.

Chinese goverment
Goverment usually does not know economy or business, just look at Bush admin you will know. In China goverment plays two roles in telecom revamp: as regulator and as majority owner. This makes the matter more complicated, and it seems to me goverment revamp effort is half-baked, also widely expected. It did not give big surprise to the market and the consumers.

Effectiveness of Chinese goverment policy in the past: telecom revamp in the past; regulatory effort on real estate (so far so failed). Of course we can not read the history book and do the investing. Otherwise all the greater investors will be history major.

Note: I wrote the above a while ago right after China offically started telecom re-org (May 23). I did write about the telecom re-org shortly after May 23, here are some.

New developments

China Mobile share (NYSE:CHL, 0914.HK) got another >5% drop yesterday, after Citi (HK) lowered H share price target from HK$ 150 to 120. Another unspoken reason, I think is the market thinks China is going to offically launch 3G shortly after Olympics.

These days Chinese stocks, ADR or A/H shares, got no love from investors. I guess people gave love to all the Chinese sportsman/woman in Beijing 🙂

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