JP-CUNI@EC2603A

China Unicom: VAT Adjustment Impacts Income and Profit

UBS downgrades China Unicom stock rating to sell

Adjustment Structure Fund Implements Reduction Plan for China Unicom

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

China Unicom Holds 2026 Work Conference to Deploy Future Tasks

China Unicom Announces Pre-Qualified Bidders for 2025 Transformer Procurement Project

Goldman Sachs Downgrades Investment Ratings and Target Prices for China Telecom and China Unicom

RayNeo Completes Over 1 Billion Yuan Financing

China Unicom Announces Bidding Results for WDM Equipment Procurement in 2025

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

China Unicom Shares Three Measures for New Industrialization and Showcases 5G Smart Power Plant Project

MAN SHUN GP

CB GLOBAL

FINSOFT FIN

CH SUPPLY CHAIN

WINSON HLDGS HK

WANJIA GROUP

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XI2CSOPMSTR

CHINA CHUNLAI

ALLEGRO CULTURE

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The three major Chinese telecom operators announced that starting this year, the value-added tax on telecom services will be raised from 6% to 9%, which is expected to impact revenue and profits. China Mobile stated it will focus on communication services and innovation; China Unicom emphasized differentiated advantages and high-quality development; China Telecom will promote its AI+ strategy and smart cloud services to enhance operational efficiency and drive business growth

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CHINA MOBILE

CHINA TELECOM

China Mobile

CHINA UNICOM

China Unicom

The value-added tax on telecommunications services for the three major Chinese telecom operators has been raised to 9%, which is expected to impact revenue and profits

China Unicom (Hong Kong) Ltd. will face a higher VAT rate due to a new regulation from China's Ministry of Finance and State Taxation Administration, effective January 1, 2026. The VAT for telecommunications services will increase from 6% to 9% as services are reclassified from "value-added telecommunications services" to "basic telecommunications services." The company anticipates this change will affect its revenue and profit, advising shareholders to exercise caution with its securities.

Reuters

China Unicom Faces Higher VAT Rate After Telecom Service Reclassification

China Unicom says an adjustment of VAT on Telecom services will impact revenue, profits

marketscreener

China Unicom says an adjustment of VAT on Telecom services will impact revenue, profits

UBS Downgrades China Unicom (Hong Kong) to Neutral from Buy, Price Target is HK$8.10

UBS Downgrades China Unicom (Hong Kong) to Neutral from Buy, Price Target is HK$8.10

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By the end of last year, the number of 5G mobile phone users in mainland China reached 1.204 billion, accounting for 65.9% of mobile phone users. The total number of mobile phone base stations nationwide was 12.87 million, of which 4.838 million were 5G base stations. The total number of fixed internet broadband access users of the three major telecommunications companies reached 691 million, with a net increase of 20.99 million for the year. The number of users with access speeds of 1 Gbps and above was 238 million, with a net increase of 31.57 million for the year, accounting for 34.5% of the total user base

AASTOCKS

ChinaAMC CSI 5G Communication ETF

China Southern CSI Communication Service ETF

Harvest CNI Communication ETF

Last year, the number of 5G mobile phone users in mainland China exceeded 1.2 billion, and the three major telecommunications companies saw a net increase of 20.99 million broadband users

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Morgan Stanley released a report listing investment ratings and target prices for Chinese telecom stocks. China Telecom is in line with the market, target price HKD 5.5; China Unicom is in line with the market, target price HKD 8; China Mobile is in line with the market, target price HKD 85; China Tower is rated as overweight, target price HKD 12.5; China Communications Services is in line with the market, target price HKD 4.4. Projected price-to-earnings ratios and dividend yields are also included

CHINACOMSERVICE

CHINA TOWER

Morgan Stanley lists investment ratings and target price valuation forecasts for Chinese telecom stocks (Table)

Morgan Stanley downgraded the industry rating of Greater China's telecom operators from "Attractive" to "Neutral," believing that the rising cycle of the past few years has ended. Although the outlook for internet data centers is strong, the macro environment and deflationary pressures are affecting mobile business, with an expected industry service revenue growth of 1.7% by 2026. The bank prefers fixed-line over mobile, believing that the adoption of AI by state-owned enterprises could become a potential catalyst for the three major telecom operators

Morgan Stanley downgraded the rating of Chinese telecom stocks to "Neutral" as the driving factors of the rising cycle over the past few years have ended

The Hang Seng Index's intraday increase expanded to 2%, and the Hang Seng Technology Index rose by 1.4%. CNOOC and CHINAHONGQIAO both increased by over 5%, while SINOPEC CORP, CHINA TELECOM, and CHINA UNICOM rose by over 4%

Wallstreetcn

CNOOC

CNOOC F03 N3305

CNOOC F13 N4305

HSTECH ETF

Sinopec Corp.

CNOOC F12 N4205

SINOPEC CORP

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

CSOP HS TECH

Hang Seng TECH Index

GX HS TECH

Hang Seng Index

CHINAHONGQIAO

CAM HS TECH

PETROCHINA

The Hang Seng Index's gain has expanded to over 400 points, reaching a four-and-a-half-year high, currently reported at 27,562 points, up 435 points or 1.6%. Major financial stocks performed strongly, with HSBC rising 2.5%, BOC HONG KONG up 1.6%, and STANCHART increasing by 2.2%. Chinese telecom stocks and the three major oil companies also rebounded with the market, rising between 3.9% and 4%. Local property stocks continue to be strong, with the private residential price index reaching a one-and-a-half-year high

E Fund CSI 300 Financials (ex Banks) ETF

Huaan CSI Banks ETF

BOC HONG KONG

China Merchants CSI BANK AH Price ETF

China Southern CSI Banks ETF

WP CSI Banks ETF

CHK OIL

HSBC HOLDINGS

ChinaAMC CSI Banks ETF

Hwabao WP CSI Banks ETF

STANCHART

The Hang Seng Index's gains expanded to over 400 points, reaching a four-and-a-half-year high, led by weighted financials, the three major oil companies, local real estate, and Chinese telecom stocks, while gold mining stocks surged along with gold prices

On January 27th, China Telecom (728.HK) continued to show weak performance during the trading session, experiencing a slight decline in the morning and then slowly moving downward throughout the day, with continuous capital outflows and significantly increased trading volume compared to previous periods, leading to a cautious market atmosphere. From the market perspective, the bears clearly held the initiative, with the closing price approaching the key technical level of 5.35 yuan, becoming a focal point for the bulls and bears during the day. In the short term, the rebound brought by a slight increase in institutional holdings last week has been almost exhausted, coupled with a lack of news and a general weakening of risk appetite in A/H shares, resulting in insufficient buying momentum in the market. The telecommunications sector has recently shown overall weak performance, lacking new industry catalysts, and the expectations for traditional buybacks and mergers and acquisitions have been fully digested by the market, causing most leading stocks to decline simultaneously, affecting investor sentiment. There are no significant collaborations or policy stimuli within the sector, leading funds to primarily choose to avoid risks or adjust their positions. It is noteworthy that heavyweight stocks, including China Unicom, have also weakened simultaneously, indicating that the entire telecommunications sector is under capital pressure, and short-term reversal signals have yet to appear. 

In terms of technical analysis, the short-term MACD has entered the bearish zone, and the main moving average system has shown a death cross and is turning downward, with increasing inertia downward pressure. If 5.35 yuan is lost, it may trigger more programmatic selling and stop-loss orders to escape, so attention should be paid to intraday trading volume and market fluctuations. If there is a significant order from the main force to intervene and rebound, it may temporarily ease the weakness, but a reversal is difficult to be optimistic about. The strategy recommendation is to focus on risk control in the short term, avoid the risk of sudden declines, and do not recommend recklessly increasing positions against the trend before right-side signals appear

Technical Forecast

Morning Trend | CHINA TELECOM faces pressure with increased volume, support lost, will the main force take action?

Chinese telecom stocks have recently performed poorly, continuing to decline since November last year, with China Mobile's stock price dropping by more than 10%. Despite an attractive dividend yield, analysts point out that geopolitical risks and rising demand for AI equipment have led to increased costs, impacting telecom companies' profits. The stock prices of China Mobile, China Unicom, and China Telecom have fallen approximately 11%, 22%, and 13% from their highs last year, respectively. Market sentiment towards telecom stocks is quite cautious, and investors need to carefully assess whether it is a bottom-fishing opportunity

Chinese telecom stocks are in a downturn, with China Mobile also suffering a 10% decline, raising concerns that it may become a stock affected by AI. Experts point out that the high dividend yield of over 6 cents is worth betting on

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Jinhui Holdings Co. Ltd. has issued a supplemental announcement detailing its acquisition of equity-linked fixed coupon notes (FCNs). The announcement clarifies key terms including trigger prices, strike-price mechanics, and early redemption conditions for the three FCN tranches. Additionally, it provides historical financial data for underlying companies such as China Unicom and Alibaba, enhancing transparency for investors. The latest analyst rating for Jinhui Holdings (HK:0137) is a Buy with a price target of HK$0.79, while the current market cap stands at HK$350M.

- Jinhui Holdings Co. Ltd. has issued a supplemental announcement detailing its acquisition of equity-linked fixed coupon notes, clarifying key terms and conditions.  
- The company provided historical financial data for underlying companies like China Unicom and Alibaba, enhancing transparency for investors assessing risks and returns.  
- The latest analyst rating for Jinhui Holdings (HK:0137) is a Buy, with a price target of HK$0.79, amid a current market cap of HK$350M.

Tip Ranks

KraneShares 2x Long BABA Daily ETF

BABA 2x Long Daily ETF - GraniteShares

JINHUI HOLDINGS

Alibaba

BABA-W

ALI HEALTH

Jinhui Holdings Details Terms and Underlyings of Equity-Linked Fixed Coupon Notes

JP-CUNI@EC2603A(18921.HK)

The value-added tax on telecommunications services for the three major Chinese telecom operators has been raised to 9%, which is expected to impact revenue and profits

China Unicom Faces Higher VAT Rate After Telecom Service Reclassification

China Unicom says an adjustment of VAT on Telecom services will impact revenue, profits

UBS Downgrades China Unicom (Hong Kong) to Neutral from Buy, Price Target is HK$8.10

Last year, the number of 5G mobile phone users in mainland China exceeded 1.2 billion, and the three major telecommunications companies saw a net increase of 20.99 million broadband users