June 16, 2009 (Chinavestor) - U.S.-based financial holding company JPMorgan Chase & Co has raised its shareholding in China Telecom (NYSE:CHA) (HKG:0728) to 8.08% from 7.86% on June11, according to the bourse operator Hong Kong Exchanges and Clearing Ltd. (HKG:0388).
HKEx said in a statement that JPMorgan Chase & Co. (NYSE:JPM) has acquired 31.037 million H-shares in China Telecom for HK$129.89 million. The average price of the share transaction was HK$4.19 apiece.
Timing of the deal seems perfect given the current weakness of China Telecom compared to its peers, China Mobile and China Unicom. While China Telecom showed strenght earlier the year China Mobile and China Unicom fared much better in the second quarter. China Telecom caught fire in last November through February following the 3G fall out in China. China Telecom has significant data services catering to corporate clients while China Mobile (Hong Kong) Ltd. , (NYSE:0941) (NYSE:CHL) and China Unicom Ltd. (HKG:0762) (NYSE:CHU)(SHA:600050) has to overcome cellular network and equipment problems.
H-shares of China Telecom were virtually unchanged to end at HK$3.55 on Tuesday.
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