Table of Contents

                INDUSTRY RESTRUCTURING .................................... 3

                COMPANY UPDATE

                       CHINA UNICOM (0762.HK/600050.SS)................................11

                       CHINA TELECOM (0728.HK).............................................. 22

                       CHINA NETCOM (0906.HK) .............................................. 29

                       CHINA MOBILE (0941.HK) ................................................ 36

                LISTED COMPANIES IN THIS REPORT........................ 43