China Telecom, facing falling growth, on acquisition trail

Following China Netcom's announcement that it was acquiring a US$1bn 20% stake in Hong Kong telecom PCCW, China Telecom revealed it was in talks with providers in Hong Kong and overseas about expansion opportunities. Deputy General Manager Leng Rongquan also revealed earnings growth for the fixed-line business could drop by 40% this year, down to 6% from 10% in 2004.