[ET Net News Agency, 16 August 2019] HSBC Global Research reduced its target price for
China Telecom (00728) to HK$4.8 from HK$5 and maintained its "buy" rating.
The research house said it will watch China Telecom's tone at half-year results on 22
August with interest. It was less interested with 4G in sharing, but it may be keener to
share with 5G.
Being the largest residential fixed-line operator in China in terms of the number of
subscribers, China Telecom relies heavily on cash inflows from the broadband business.
More aggressive broadband pricing from China Mobile (00941) would further hit the market
leader's position, cash flow, and profit outlook. (KL)