HU-CUNI@EC2609A

Reform Structuring Fund Reduced Shares of China Unicom

China Unicom: VAT Adjustment Impacts Income and Profit

UBS downgrades China Unicom stock rating to sell

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Honor Launches Magic8 Pro Air eSIM Phone with Four-SIM Support

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RayNeo Completes Over 1 Billion Yuan Financing

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UniComm Venture Capital Invests 1 Billion in CITIC Sci-Tech Fund

Shenzhen and Dongguan Launch Construction of the First Mobile Terminal AI Application Prototype Testing Base

Shanghai Announces Top 10 Core Achievements of 'AI + Transportation' in 2025 Release

China Unicom Announces Bidding Notice for 2025 Transformer Concentrated Procurement Project

China Unicom Announces 2025 Standard WDM Equipment Procurement Tender

China Unicom Announces Tender for 2025 Access Routers and Dedicated Servers Procurement Project

China Unicom Launches Pre-Qualification for 5G Messaging System and Centralized SMS Center Procurement

China Unicom reports strong Q3 performance, cloud and data center revenues surge

Xinyang Unicom Abandons Qualification for a 52 Million Yuan Information Construction Project

UNI PRINTSHOP

WING CHI HLDGS

CINESE INTL

WAN KEI GROUP

CHINA WACAN

JH EDUCATION

DIGITAL DOMAIN

LOTUS HORIZON

VICO INTL HLDGS

K W NELSON GP

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600050

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China Mobile's recent announcement of increased value-added tax (VAT) from 6% to 9% on some services signals potential risks for Chinese companies amid falling fiscal revenues. While the impact on China Mobile's earnings is estimated at 6%, smaller competitors like China Telecom and China Unicom are still feeling the effects. Despite state media downplaying broad tax hikes, strained public finances may lead to a reevaluation of tax policies affecting the tech sector, which has historically enjoyed lower rates compared to state-owned enterprises. Policymakers face challenges as local government revenue continues to decline.

Reuters

CHINA TELECOM

China Unicom

CHINA MOBILE

China Mobile

CHINA UNICOM

China Mobile tax pain points to bigger risks

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According to China Space and Time Information Group, recently, China Space and Time has partnered with the three major telecommunications operators to launch the Beidou SMS service. Based on the service capabilities of China Space and Time, China Mobile, China Telecom, and China Unicom all support the Beidou SMS service. (CCTV)

Wallstreetcn

Fullgoal CSI Communication Equipment Thematic ETF

Guotai CSI All Share Communications Equipment ETF

China Southern CSI Communication Service ETF

Harvest CNI Communication ETF

China Space and Time collaborates with operators to launch Beidou SMS services

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On February 1st, China Mobile, China Unicom, and China Telecom announced that the value-added tax rate would be adjusted from 6% to 9%, which will affect the company's revenue and profits. As a result of this news, on February 2nd, the stock prices of the three major operators collectively fell, with a total market value decrease of over 100 billion yuan. Analysts pointed out that the tax rate increase may compress post-tax net profits, thereby affecting dividends and shaking the valuation foundation of the operators

- On February 1, China’s three major telecom operators announced a change in the value-added tax (VAT) rate from 6% to 9%, affecting their revenues and profits.  
- Following the announcement, stock prices for China Mobile, China Unicom, and China Telecom dropped significantly, with market values decreasing by over 1,000 billion yuan.  
- Experts predict that the VAT adjustment could reduce net profits by 9% for China Mobile, 17.9% for China Telecom, and 18.2% for China Unicom, though operational adjustments may mitigate some impacts in the long term.

ChinaAMC CSI 5G Communication ETF

Will the increase in VAT rates lead to price hikes for China Mobile, China Unicom, and China Telecom?

On January 30, 2026, China announced an increase in the value-added tax rate for the telecommunications industry from 6% to 9%. This policy will impact the revenue and profits of China Mobile, CHINA TELECOM, and CHINA UNICOM, leading to a significant drop in stock prices. The expected impact on the profits of the three major operators ranges from 5% to 32%, with revenues projected to decline by approximately 2.75%. Due to intense market competition, operators will find it difficult to pass on the revenue reduction pressure to users, resulting in a direct negative impact on net profits in the short term

- On January 30, 2026, a new tax policy raised the VAT rate for telecom services from 6% to 9%, impacting core services like mobile data and broadband.  
- Major state-owned operators, China Mobile, China Telecom, and China Unicom, confirmed this would negatively affect their revenue and profits, with stock prices dropping significantly.  
- The policy is expected to decrease net profits by 4.6% to 8.4% for these companies, creating short-term challenges but maintaining long-term growth potential through high dividends and evolving cloud services.

The VAT rate jumps by 3 percentage points! The three major telecom operators are under short-term pressure; can new productive forces break the deadlock in the long term?

The three major A-share indices fell by 2.5% to 2.7% throughout the day. The mainland manufacturing PMI dropped to 49.3, and the non-manufacturing PMI also fell to 49.3, hitting a three-year low. The People's Bank of China conducted a reverse repurchase operation of 75 billion yuan, and the central parity rate of the yuan against the US dollar was lowered to 6.9695. The Shanghai Composite Index closed down 102 points, the Shenzhen Component Index fell 381 points, and the ChiNext Index dropped 82 points. Telecommunications, oil and gold, and semiconductor stocks were generally under pressure, Vanke expected an expanded loss, and the stock prices of the three major telecommunications companies declined

AASTOCKS

Vanke

CHINA VANKE

The three major A-share indices of Shanghai and Shenzhen fell by 2.5% to 2.7% throughout the day, with telecommunications, oil, gold, and semiconductor stocks all under pressure

The UBS report pointed out that the value-added tax for the three major telecommunications operators in mainland China will be raised from 6% to 9% starting January 1, 2023. This move is expected to have a significant negative impact on the profits of China Mobile, China Telecom, and China Unicom, affecting net profits by approximately 9%, 17.9%, and 18.2%, respectively. The bank anticipates that this adjustment will reduce the service revenue of telecommunications operators by about 1.5% to 2%. The three major telecommunications operators will strive to improve operational efficiency, focus on high-quality development, and accelerate the transition to artificial intelligence and cloud services to cope with the impact of the tax rate increase

UBS: The increase in value-added tax for mainland telecom operators is estimated to impact the profits of China Mobile, China Telecom, and China Unicom by 9%, 18%, and over 18%, respectively

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In the Hong Kong stock market, the three major indices collectively fell, with the Hang Seng Index losing its recent high. The Hang Seng Tech Index and the National Enterprises Index also saw significant declines. The retail sector is under noticeable pressure, with major leading stocks lacking significant positive news, and institutional and investor sentiment is cautious. Tencent Holdings fell by 2.39%, and Alibaba -W dropped by 3.84%. Currently, there are no significant new positive factors at the macro level, and funds are focused on global risk appetite and the exchange rate of the Renminbi. The overall market performance is under pressure, awaiting external and policy-driven momentum

- Hong Kong's stock market indices fell sharply, with the Hang Seng Index down 2.92%, reflecting cautious market sentiment.  
- Key sectors, including internet content and telecommunications, experienced significant declines due to macroeconomic uncertainties and shifts in investor risk appetite, leading to notable losses for major companies.  
- Despite the downturn, some stocks like MINIMAX-WP and Yunzhisheng saw substantial gains, driven by strong interest in AI-driven technologies and positive business forecasts.

Market Heartbeat

Hang Seng TECH Index

TENCENT

KUAISHOU-W

BIDU-SW

BABA-W

JD.com

MNSO

MINIMAX-WP

BASETROPHY GP

MANY IDEA CLOUD

UNISOUND

DC HOLDINGS

MOBVOI

GR LIFE STYLE

ZIJIN MINING

SMIC

Hong Kong stocks intraday | The three major indices collectively fell, with heavyweight stocks like Tencent and Alibaba experiencing significant declines, while the AI sector showed independent market performance

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The Hang Seng Index's afternoon decline expanded to over 700 points, with China Unicom dropping 8%. Resource stocks, chip stocks, and automotive stocks were under pressure, while the newly listed stock MINIMAX rose 6% against the trend

China Southern Hang Seng ETF

Hang Seng Index

FL2 CSOP HSI

The Hang Seng Index's afternoon decline expanded to over 700 points, with China Unicom dropping 8%. Resource stocks, chip stocks, and automotive stocks were under pressure, while the newly listed stock MINIMAX rose 6% against the trend

Shares of China Unicom fell 11.1% to HK$7.07, marking a near one-year low due to adjustments in the Value-Added Tax (VAT) for telecommunications services, which increased from 6% to 9%. This change is expected to negatively impact revenue and profits for China Unicom, China Telecom, and China Mobile, with their shares also declining significantly. Year-to-date, China Unicom is down 6.8%, China Telecom 7.8%, and China Mobile 5.1%.

China Unicom drops to near one-year low on VAT adjustments; rivals down

The Hong Kong stock market fell in the morning session, with the Hang Seng Index down 656 points or 2.4%, reporting at 26,730 points. The National Index fell 252 points or 2.7%, and the Hang Seng Tech Index dropped 210 points or 3.7%. The commodity market is volatile, with gold and silver prices continuing to decline, leading to a general drop in related stocks. Brent crude oil fell by more than 4%, with noticeable declines in PetroChina and CNOOC. Domestic property stocks and telecom stocks also experienced declines due to VAT adjustments, with the overall market turnover at HKD 178.124 billion

HSCEI ETF

Guotai CSI Oil & Gas Industry ETF

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

SPDR GOLD TRT

PETROCHINA

E Fund CSI Petrochemical Industry ETF

ZHONGJIN GOLD

CHK OIL

FL2CSOPGOLD

CNOOC F03 N3305

SINOPEC CORP

CNOOC F12 N4205

CNOOC

ChinaAMC Gold ETF

Sinopec Corp.

CNOOC F13 N4305

SD-GOLD

ChinaAMC CSI Petrochemical Industry ETF

"Hong Kong Stocks" Hang Seng Index drops 656 points in half a day, commodities, Chinese telecommunications, and automotive stocks under pressure

As of noon, the three major indices of the Hong Kong stock market have significantly declined, with the Hang Seng Index, Hang Seng Tech Index, and the National Enterprises Index all experiencing substantial corrections, led by core assets and the telecommunications sector. Sectors such as internet content, retail, telecommunications services, and automotive manufacturers are under overall pressure, with leading stocks like Alibaba and China Mobile showing notable declines. Short-term risk aversion sentiment among funds is rising, but AI and certain new economy stocks are performing strongly against the trend, becoming the focus of attention during the trading session. On the macro front, fluctuations in the RMB exchange rate, PMI, and export data have increased funds' attention to policy and expectations for domestic capital inflows, leading to intensified sector differentiation amid short-term volatility

- As of February 2, the Hong Kong stock indices are under pressure, with the Hang Seng Index dropping 2.40% to 26,730.78 points.  
- Investor sentiment is cautious, particularly in the internet content and retail sectors, which are facing significant declines, and notable stocks like Tencent and Alibaba have reported decreases.  
- Macroeconomic factors such as fluctuating RMB rates and improving manufacturing PMI are noted, but short-term volatility is evident within the market.

MINDTELL TECH

JD-SW

Hong Kong Stock Midday Review | The three major indices declined significantly, with automotive and telecommunications being the biggest drag, while AI concepts led the gains against the trend

The three major telecommunications companies in mainland China, China Mobile, China Unicom, and China Telecom, announced that due to the increase in the value-added tax rate from 6% to 9%, the charges for related telecommunications services may be adjusted. Tax experts pointed out that the revenue and profits of enterprises will be affected, and whether prices will rise in the future depends on the elasticity of consumer demand. Although voice call services are not affected, services such as broadband access and SMS may see price increases

The value-added tax rate for the three major telecommunications companies in mainland China has increased, and experts predict a possible price increase for broadband access

HU-CUNI@EC2609A(17759.HK)

China Mobile tax pain points to bigger risks

China Space and Time collaborates with operators to launch Beidou SMS services

Will the increase in VAT rates lead to price hikes for China Mobile, China Unicom, and China Telecom?

The VAT rate jumps by 3 percentage points! The three major telecom operators are under short-term pressure; can new productive forces break the deadlock in the long term?

The three major A-share indices of Shanghai and Shenzhen fell by 2.5% to 2.7% throughout the day, with telecommunications, oil, gold, and semiconductor stocks all under pressure