China Telecom prepares to raise funds

China Telecom notified the US Securities and Exchange Commission that it is planning a sale which may included Hong Kong H-shares, US depositary shares and bonds that can be turned into shares in China's largest fixed line company. China Telecom said it expected to raise as much as US$1 billion with the sale, for which it gave no timetable. The company purchased six provincial networks in 2003 for US$5.6 billion from China Telecommunications Corp, its state-owned parent with whom it is in talks regarding additional purchases which are estimated to be worth US$7.7 million.