China Telecom, the country’s second largest mobile operator, surged 35% over its offer price of 4.53 yuan in its market debut in Shanghai, cementing its status as the world’s biggest listing so far in 2021.The rise of the stock, reaching the daily limit of 44% at its highest, at one point triggered a 30 minute trading halt on Friday. The size of the listing has exceeded the $6.3 billion initial public offering by TikTok-rival Kuaishou Technology in Hong Kong in February.The surge indicates enthusiasm in the markets for China’s push to build the world’s largest 5G networks -- and monetise the high-speed technology behind them. China Telecom has sought more diversified financing channels after the US removed the company and two other Chinese wireless giants from the New York Stock Exchange following an executive order by former president Donald Trump.China Telecom could be followed by more listings by Chinese companies in the mainland or Hong Kong, as Beijing extends a crackdown on local firms listing abroad.China Mobile, the world’s largest mobile operator by subscribers, is also seeking a second listing in Shanghai, planning to raise 56 billion yuan to invest in projects including 5G networks. China Unicom Hong Kong Ltd. announced on Thursday that it’s considering a mainland listing for its technology arm.
Friday, August 20, 2021
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