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China Telecom Corporation Limited (CHA)

  • Wed, Sep. 23, 1:09 PM
    • Chinese handset maker Xiaomi has launched its MVNO wireless service, which it's calling Mi Mobile.
    • As with other mobile virtual network operators, the company aims to simplify branding and consumer offerings while traveling on other companies' networks. In Xiaomi's case, it's using the 2G, 3G and 4G networks of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • Mi Mobile is marketing two SIM-only plans: one that charges 0.10 yuan per voice minute/SMS/MB, or an add-on that comes with 3 GB of data for 59 yuan/month ($9.24/month).
    • Xiaomi is out in front of a host of competitors (including Lenovo, Foxconn, Youku Tudou and Hisense) setting up MVNOs as China encourages competition for the state-owned telecoms.
    | Wed, Sep. 23, 1:09 PM | Comment!
  • Mon, Sep. 21, 9:44 AM
    • Market leader China Mobile (CHL +2.7%) led mobile subscriber adds among the big three Chinese wireless firms for August, while China Unicom (CHU +0.8%) shed subs in a few areas as the month's customer numbers came in.
    • China Mobile added 1.3M net subscribers for mobile, to hit 820.1M customers, and its 4G base grew to 229.2M subs from 208.8M, while 3G customers fell to 202.6M from 209.8M.
    • Unicom lost 556,000 mobile subs to end up with 287.8M in August. The company lost 278,000 local access subs to end August with 77.4M. Mobile broadband users grew, though, by 4.7M subs to 167.6M, and fixed broadband grew by 478,000 to 71.53M.
    • Meanwhile, China Telecom (CHA +1.2%) added 900,000 mobile subs to end the month with 193.1M. It also grew fixed broadband slightly, to 110.5M accesses from 110M, and fixed telephony shrank slightly, to 137.6M lines in services from the previous 138.4M.
    | Mon, Sep. 21, 9:44 AM | 3 Comments
  • Mon, Aug. 24, 1:55 PM
    • In the wake of some "musical chairmen" today, Chinese telecoms that switched around leadership are off along with other U.S.-traded Chinese issues, though analysts are coming in with different takes on the outcome.
    • Market leader China Mobile (NYSE:CHL) is 5.3% lower on the NYSE as Jefferies Group cuts its price target to $76.13. Shares had closed on Friday at $62.87 and are currently at $59.61, implying near 28% upside from today.
    • China Telecom (NYSE:CHA) ADRs are similarly down 4.1%, to $55.95. Meanwhile, China Unicom (NYSE:CHU) is doing well in comparison, down just 2.4%, after Jefferies upgraded it to Buy, from Hold -- but with a lower price target.
    • Jefferies cut its target on CHU to $18.32, from $19.40. Shares closed Friday at $14 and are currently at $13.67, implying a 34% upside remaining from today's prices.
    • Jefferies had lowered its target on CHA to $71 on Friday. The firm maintains Buy ratings on all three of the Chinese telecoms.
    • Previously: China confirms chairman changes at its big three telecoms (Aug. 24 2015)
    | Mon, Aug. 24, 1:55 PM | Comment!
  • Mon, Aug. 24, 3:34 AM
    • Confirming a speculated shuffle at China's top telecoms, China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU) have swapped out chairmen, and market leader China Mobile gets a new chairman from the government.
    • Shang Bing, a vice minister at China's government regulator, takes over as chairman at China Mobile (NYSE:CHL), replacing retiring Xi Guohua.
    • China Unicom's chairman Chang Xiaobing will head to China Telecom, and China Telecom's chairman Wang Xiaochu takes over at China Unicom.
    • Shang, taking over at China Mobile, had previously been president in his own stints at China Telecom and China Unicom.
    • It's the biggest changeover in Chinese telecom (where the big three are state-owned) in many years, though China has tended to change out the leaders of the companies every few years.
    • Previously: China preparing to shuffle leaders of its three telecoms (Aug. 21 2015)
    • Previously: China Tower venture planning $10B private placement (Jul. 20 2015)
    | Mon, Aug. 24, 3:34 AM | 3 Comments
  • Fri, Aug. 21, 1:16 PM
    • China's getting ready to shuffle the leadership at its three telecoms amid an industry revamp -- but rumors have highly variable information about what the shakeup will look like.
    • Xi Guohua, chairman of the parent of market leader China Mobile (NYSE:CHL), will retire, to be replaced by government minister Shang Bing, Bloomberg and Caijing reported -- and similar changes would come to the leadership of China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).
    • But rumors persist that China Telecom Chairman Wang Xiaochu could return to lead China Mobile (where he was previously CEO), and that Shang Bing would take over at China Telecom instead.
    • China Unicom posted earnings earlier, and its Chairman Chang Xiaobing skipped the company's press conference to head instead to an important meeting in Beijing. The company's president, Lu Yimin, said he hadn't heard any notice about changing management, and indeed China Unicom's leadership may stay intact.
    • The result, though, may be the biggest overhaul to China's telecom industry since 2008.
    • The three companies still face an October deadline for asset injection into a mobile tower holding company that will absorb all their tower assets.
    • ADRs are up in U.S. trading: CHL +1.6%; CHA +5.7%; CHU +5.7%.
    • Previously: China Mobile Limited reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Telecom reported 1H results on Aug. 20 (Aug. 21 2015)
    • Previously: China Unicom reports 1H results (Aug. 21 2015)
    | Fri, Aug. 21, 1:16 PM | 1 Comment
  • Fri, Aug. 21, 11:55 AM
    • China Telecom (NYSE:CHA): 1H EPS of RMB0.14.
    • Revenue of RMB164.95B (-0.6% Y/Y).
    • Press Release
    | Fri, Aug. 21, 11:55 AM | Comment!
  • Fri, Jul. 31, 12:57 PM
    • China Unicom (NYSE:CHU) is up 1.4% on standard volume after HSBC upgraded shares to Hold, from Reduce.
    • Analysts' mean recommendation is inching toward a Buy. Consensus price targets are at $19.40, implying more than 37% upside from here.
    • China Unicom has had a choppy year and is down 25.8% over the past three months, but is still up 4.9% YTD.
    • Also moving today in U.S. trading: peers China Telecom (CHA +1%) and China Mobile (CHL +2.3%).
    | Fri, Jul. 31, 12:57 PM | Comment!
  • Mon, Jul. 20, 9:42 AM
    • China Tower -- the state-owned company built of the pooled wireless towers of China Mobile (CHL +0.3%), China Telecom (CHA +0.6%) and China Unicom (CHU -1.5%) -- will raise as much as 60B yuan (about $9.7B) in a private placement to outside investors, Bloomberg reports.
    • The companies will put a combined 300B yuan of assets into China Tower by the end of August.
    • It's of a piece with China encouraging private investment in state-owned industries to fight slowing growth. With the sensitive nature of telecom, though, only domestic investors may be invited to China Tower's placement.
    • With 40% of the tower venture, market leader China Mobile has the biggest stake.
    | Mon, Jul. 20, 9:42 AM | 1 Comment
  • Fri, Jul. 10, 2:15 PM
    | Fri, Jul. 10, 2:15 PM | 1 Comment
  • Tue, Jul. 7, 9:53 AM
    • A continuing rout in China is pressing the country's mobile providers.
    • In U.S. trade, China Telecom (NYSE:CHA) is off 5.6%; China Unicom (NYSE:CHU) down 4.9% and China Mobile (NYSE:CHL) down 2.9%.
    • Hong Kong's PCCW (OTCPK:PCCWY) is off 6.2% in over-the-counter trading as well.
    • The Shanghai Composite is back to a selloff despite a rash of support measures from Beijing. Several hundred companies have taken the risky move of filing for a trading halt in Shanghai and Shenzhen in an attempt to escape the downdraft.
    | Tue, Jul. 7, 9:53 AM | Comment!
  • Wed, Jun. 10, 8:27 PM
    • China Telecom (NYSE:CHA) has made an increased bet on Africa with a new operating unit, China Telecom (Africa and Middle East), to manage its buildout in the region.
    • The unit will oversee local subsidiaries and focus on multinational customers -- especially Chinese firms. Inefficient backbone services there are expensive, China Telecom notes, and are ripe for growth and investment.
    • The company announced a contract win in March to design and build a national optical network for Malawi.
    • Shares of China Telecom fell 1% today and are down more than 11% over the past month.
    | Wed, Jun. 10, 8:27 PM | 1 Comment
  • Mon, May 18, 2:39 PM
    • After closing lower in Hong Kong, China's big three wireless carriers are down in U.S. trading, giving back Friday gains after saying they'd cut data prices and boost speeds in an effort that could push migration to 4G.
    • In the U.S., China Mobile (NYSE:CHL) is down 4.1%; China Telecom (NYSE:CHA) is down 4.1% and China Unicom (NYSE:CHU) down 3.2%.
    • The state-owned firms have gotten a push from Premier Li Keqiang to expand Internet access. Leader China Mobile will cut mobile data prices by at least 35% this year; China Unicom plans cuts of 20% or more per megabyte, and China Telecom is looking at average cuts of 30%/megabyte.
    • The move means a change in short-term revenue but could raise profits depending on the migration rate to more lucrative 4G accounts and usage.
    • Previously: China mobile infrastructure spending jumped 51% in 2014 (Apr. 21 2015)
    | Mon, May 18, 2:39 PM | Comment!
  • Tue, Apr. 21, 9:11 PM
    • Mobile infrastructure spending in China rose 51% last year, according to an Infonetics report, primed by "robust" TD-LTE deployments at wireless leader China Mobile (NYSE:CHL) and W-CDMA expansions at China Unicom (NYSE:CHU).
    • Those increases countered a significant capex cut by third competitor China Telecom (NYSE:CHA).
    • China Mobile in particular had a goal of raising TD-LTE rollouts from 150K TD-LTE eNodeBs to 500K, but ended the year with 720K in a next-gen push. The company has 60% of China's mobile subscribers.
    • The mobile operators added 58M subscribers in 2014 to push the total market to 1.3B subscribers.
    • Gains today: China Mobile (CHL) up 4.3%; China Telecom (CHA) up 1.5%; China Unicom (CHU) up 3%.
    • Previously: China telecoms: Providers gain again; Unicom adds 1.6M net subs (Apr. 21 2015)
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 9:11 PM | Comment!
  • Tue, Apr. 21, 11:16 AM
    • Chinese telecom providers are up for a second straight day following China's stimulus.
    • In U.S. trading, China Mobile (NYSE:CHL) is up 4.6%; China Telecom (NYSE:CHA) is up 1.8%; and China Unicom (NYSE:CHU) is up 3.4%.
    • China Mobile had previously jumped 7.5% in Hong Kong, while China Unicom had gained 3.6% there.
    • In March operations, China Unicom pointed to net added mobile subscribers of 1.6M to bring its total there to 294.75M; net added fixed-line broadband subscribers of 375K to bring that total to 69.6M; and a net loss in local access subscribers of 579K to bring that total down to 80.3M.
    • China Telecom signed a deal with payments platform SmartTrans to bring financial news and info to subscribers through its "Love Finance" offering, to be promoted through mobile news, texts and WAP channels. Subscribers to that product will pay 5 yuan/month.
    • Previously: Chinese wireless firms up on PBOC easing; China Mobile notes Q1 results (Apr. 20 2015)
    | Tue, Apr. 21, 11:16 AM | Comment!
  • Mon, Apr. 20, 7:35 PM
    • Chinese wireless firms jumped in U.S. trading today in reaction to new easing from China, where the central bank cut its reserve requirement ratio a percentage point to 18.5%
    • China Mobile (NYSE:CHL) gained 5.4% today and is up another 3.2% after hours; China Telecom (NYSE:CHA) closed up 4.9%; and China Unicom (NYSE:CHU) closed up 5.3% (and is up now 0.2% after hours).
    • China Unicom was among leaders among Hong Kong stocks today, trading 2.2% higher there, while China Telecom was up 2.8%.
    • China Mobile provided unaudited key indicators from its Q1, noting that while operating revenue was up 3.9% Y/Y (to 160.9B yuan) and EBITDA up 2.8% (to 59.2B yuan), net profit slipped 5.6% Y/Y to 23.8B yuan.
    • As the substitution impact of over-the-top business (including apps like Tencent's WeChat) on China Mobile's traditional business "continued to intensify, voice services and SMS and MMS services further declined," the company noted, with voice and SMS usage down 1.3% and 4.5% respectively.
    • "The Group is at a critical stage of transformation of its development," writes Chairman Xi Guohua, noting that capex and cost input continue to remain high amid heavy demand for resources from 4G construction, business development and customer retention.
    | Mon, Apr. 20, 7:35 PM | Comment!
  • Thu, Apr. 9, 10:00 PM
    • In a new report on fiber, DSL and cable broadband subscribers, Infonetics Research projects that consumers are driving global fixed broadband adoption toward a 5% compound annual growth rate through 2019, from a current base of 733M (up 8% last year).
    • Global growth will lead the way, the firm says, especially in China (Asia Pacific has 50% of the world's fixed broadband subscribers, and China Telecom (NYSE:CHA) is the worldwide share leader) -- as well as Russia, Brazil, Mexico, Arrgentina, Indonesia, Thailand and Vietnam.
    • Other insights: DSL's still the biggest technology, but growth is coming via fiber-to-the-home and DOCSIS 3.0 cable; and FTTH subscribers grew 22% last year to cross the 100M-subscriber line.
    | Thu, Apr. 9, 10:00 PM | 3 Comments
CHA vs. ETF Alternatives
Company Description
China Telecom Corp Ltd along with its subsidiaries is an integrated information service company. It offers telecommunications services, including wireline voice services, mobile voice services, Internet access services, value-added services.
Sector: Technology
Country: China