HKT-SS Initiates Early Deployment for Lok Ma Chau Loop and Northern Metropolis, Strengthens Collaboration with Research Institutions for Execution
China's Technological Self-Reliance: The "15th Five-Year Plan" emphasizes high-level technological self-reliance, with Hong Kong expected to contribute significantly through innovation and technology development, particularly in the Lok Ma Chau Loop and Northern Metropolis.
AI Facility and Research Center: A new AI facility and research center has been established in the Lok Ma Chau Loop to enhance cross-border connectivity and data flow in the Greater Bay Area, addressing the growing demand for fiber optics.
Collaboration and Business Outlook: The group plans to collaborate with research institutions to apply research results practically, expressing optimism about AI's positive impact on the telecom industry and the government's smart city initiatives.
Market Competition: China Mobile Hong Kong's entry into the market with affordable 5G plans is intensifying competition, but the group remains committed to fair competition and is cautious about its market strategies.
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CHINA MOBILE Invests USD22M in Huawei AI Chips
Huawei and China Mobile Agreement: Huawei announced that China Mobile has signed a procurement agreement to purchase USD 22 million worth of AI chips, specifically Ascend 910B chips and Atlas 800 training servers.
Purpose of the Purchase: The procurement is aimed at constructing provincial-level intelligent computing centers and 5G-A core network AI inference nodes.
Short Selling Information: As of February 10, 2026, China Mobile has reported short selling of $138.14 million with a ratio of 7.805%.
Analyst Downgrade: Goldman Sachs has downgraded China Mobile's rating to neutral and reduced its target price to HKD 88.
HKT-SS Initiates Early Deployment for Lok Ma Chau Loop and Northern Metropolis, Strengthens Collaboration with Research Institutions for Execution
China's Technological Self-Reliance: The "15th Five-Year Plan" emphasizes high-level technological self-reliance, with Hong Kong expected to contribute significantly through innovation and technology development, particularly in the Lok Ma Chau Loop and Northern Metropolis.
AI Facility and Research Center: A new AI facility and research center has been established in the Lok Ma Chau Loop to enhance cross-border connectivity and data flow in the Greater Bay Area, addressing the growing demand for fiber optics.
Collaboration and Business Outlook: The group plans to collaborate with research institutions to apply research results practically, expressing optimism about AI's positive impact on the telecom industry and the government's smart city initiatives.
Market Competition: China Mobile Hong Kong's entry into the market with affordable 5G plans is intensifying competition, but the group remains committed to fair competition and is cautious about its market strategies.
G Sachs Lowers CHINA MOBILE's Rating to Neutral and Reduces Target Price to HKD88
Goldman Sachs Report: Goldman Sachs has a positive outlook on China Mobile (00941.HK) despite recent challenges in the telecom sector.
5G Growth Concerns: The growth of 5G telecom services is slowing, with new base station estimates for 2025 being 8,000 lower than expected, and projected decreases in new base stations for 2026-27.
Target Price Adjustment: Goldman Sachs has lowered China Mobile's target price from HKD 105 to HKD 88 and downgraded its rating from Buy to Neutral.
Market Activity: As of February 6, 2026, short selling activity for China Mobile was reported at $429.21 million, with a short selling ratio of 26.126%.
Citi Research: Anticipated VAT Rate Change Could Affect Service Revenue of Three Major Telecoms by Approximately 3%
Tax Adjustment Announcement: Starting January 1, 2026, the tax for 'value-added telecommunication services' will be adjusted, increasing the VAT rate from 6% to 9% for services like mobile data, SMS, and internet broadband.
Impact on Revenue: Citi Research estimates that the tax change could lead to a 3% potential impact on service revenue for major telecom operators, as they may not pass the increased tax burden onto consumers due to market competition.
CICC Anticipates Short-Term Pressure on Chinese Telecoms' Share Prices
VAT Increase on Telecom Services: China's Ministry of Finance and State Administration of Taxation have raised the VAT on telecommunication services, which is expected to impact operators' profits without passing the tax burden onto customers by 2026.
CICC's Earnings Forecasts: CICC has revised its earnings forecasts for China Mobile and China Telecom, maintaining 2025 estimates but lowering revenue and net profit projections for 2026 due to the VAT changes.
Market Impact: The share prices of Chinese telecom companies may experience short-term pressure as the market adjusts to the new tax policy and the lowered earnings outlook.
Target Price Adjustments: While CICC has kept its original ratings for the telecom companies, it has reduced its target prices in light of the anticipated financial impacts from the VAT increase.
<JPM Research> CN Telecom VAT Increase Expected to Affect CHINA MOBILE the Least
VAT Adjustment Announcement: Chinese telecom companies are increasing the value-added tax (VAT) on mobile data, SMS/MMS, and internet broadband services from 6% to 9%, which is expected to affect their net profits.
Impact on Net Profits: JPMorgan estimates that the profit impacts for CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM will be 7.1%, 12.6%, and 11.9% respectively by 2026, with CHINA MOBILE likely facing the least damage due to its higher gross profit margin.
Dividend Yield Forecasts: JPMorgan predicts that the dividend yields for CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM will be 7%, 5.7%, and 6.8% respectively in 2026, maintaining their attractiveness compared to the Hang Seng Index (HSI).
Investment Rating: Despite the VAT increase, JPMorgan has maintained an Overweight rating on the three telecom companies, indicating a positive outlook for their stock performance.
CHINA MOBILE Invests USD22M in Huawei AI Chips
Huawei and China Mobile Agreement: Huawei announced that China Mobile has signed a procurement agreement to purchase USD 22 million worth of AI chips, specifically Ascend 910B chips and Atlas 800 training servers.
Purpose of the Purchase: The procurement is aimed at constructing provincial-level intelligent computing centers and 5G-A core network AI inference nodes.
Short Selling Information: As of February 10, 2026, China Mobile has reported short selling of $138.14 million with a ratio of 7.805%.
Analyst Downgrade: Goldman Sachs has downgraded China Mobile's rating to neutral and reduced its target price to HKD 88.
HKT-SS Initiates Early Deployment for Lok Ma Chau Loop and Northern Metropolis, Strengthens Collaboration with Research Institutions for Execution
China's Technological Self-Reliance: The "15th Five-Year Plan" emphasizes high-level technological self-reliance, with Hong Kong expected to contribute significantly through innovation and technology development, particularly in the Lok Ma Chau Loop and Northern Metropolis.
AI Facility and Research Center: A new AI facility and research center has been established in the Lok Ma Chau Loop to enhance cross-border connectivity and data flow in the Greater Bay Area, addressing the growing demand for fiber optics.
Collaboration and Business Outlook: The group plans to collaborate with research institutions to apply research results practically, expressing optimism about AI's positive impact on the telecom industry and the government's smart city initiatives.
Market Competition: China Mobile Hong Kong's entry into the market with affordable 5G plans is intensifying competition, but the group remains committed to fair competition and is cautious about its market strategies.
G Sachs Lowers CHINA MOBILE's Rating to Neutral and Reduces Target Price to HKD88
Goldman Sachs Report: Goldman Sachs has a positive outlook on China Mobile (00941.HK) despite recent challenges in the telecom sector.
5G Growth Concerns: The growth of 5G telecom services is slowing, with new base station estimates for 2025 being 8,000 lower than expected, and projected decreases in new base stations for 2026-27.
Target Price Adjustment: Goldman Sachs has lowered China Mobile's target price from HKD 105 to HKD 88 and downgraded its rating from Buy to Neutral.
Market Activity: As of February 6, 2026, short selling activity for China Mobile was reported at $429.21 million, with a short selling ratio of 26.126%.
Citi Research: Anticipated VAT Rate Change Could Affect Service Revenue of Three Major Telecoms by Approximately 3%
Tax Adjustment Announcement: Starting January 1, 2026, the tax for 'value-added telecommunication services' will be adjusted, increasing the VAT rate from 6% to 9% for services like mobile data, SMS, and internet broadband.
Impact on Revenue: Citi Research estimates that the tax change could lead to a 3% potential impact on service revenue for major telecom operators, as they may not pass the increased tax burden onto consumers due to market competition.
CICC Anticipates Short-Term Pressure on Chinese Telecoms' Share Prices
VAT Increase on Telecom Services: China's Ministry of Finance and State Administration of Taxation have raised the VAT on telecommunication services, which is expected to impact operators' profits without passing the tax burden onto customers by 2026.
CICC's Earnings Forecasts: CICC has revised its earnings forecasts for China Mobile and China Telecom, maintaining 2025 estimates but lowering revenue and net profit projections for 2026 due to the VAT changes.
Market Impact: The share prices of Chinese telecom companies may experience short-term pressure as the market adjusts to the new tax policy and the lowered earnings outlook.
Target Price Adjustments: While CICC has kept its original ratings for the telecom companies, it has reduced its target prices in light of the anticipated financial impacts from the VAT increase.
<JPM Research> CN Telecom VAT Increase Expected to Affect CHINA MOBILE the Least
VAT Adjustment Announcement: Chinese telecom companies are increasing the value-added tax (VAT) on mobile data, SMS/MMS, and internet broadband services from 6% to 9%, which is expected to affect their net profits.
Impact on Net Profits: JPMorgan estimates that the profit impacts for CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM will be 7.1%, 12.6%, and 11.9% respectively by 2026, with CHINA MOBILE likely facing the least damage due to its higher gross profit margin.
Dividend Yield Forecasts: JPMorgan predicts that the dividend yields for CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM will be 7%, 5.7%, and 6.8% respectively in 2026, maintaining their attractiveness compared to the Hang Seng Index (HSI).
Investment Rating: Despite the VAT increase, JPMorgan has maintained an Overweight rating on the three telecom companies, indicating a positive outlook for their stock performance.
