The latest market reaction in China points to the fact that Beijing may be close to unveiling plans for the 3G wireless service, helping to boost stocks and exchange traded funds (ETFs). Shares of China’s state-controlled but Hong Kong-listed fixed-line telecom companies rose on early this week in response that the government may grant mobile licenses soon, reports Mure Dickie for Financial Times.
The news has been met with a lot of excitement. Speculation concerning 3G has been a long-discussed topic because the remodeling would reduce the number of big operators from four to three. The two biggest contenders are China Telecom and China Netcom, already the two major fixed-line operators. China Telecom shares rose 4.6% to close at HK$5.45 ($0.70). China Netcom closed 5.5% to HK$21.15 ($2.72). China-focused ETFs may experience the surge down the line:
- iShares FTSE/Xinhua China 25 Index (FXI)
- SPDR S&P China (GXC),
- PowerShares Golden Dragon Halter (PGJ)
- iShares MSCI Hong Kong Index (EWH)
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