[ET Net News Agency, 25 June 2018] China Telecom (00728) said it agreed to establish
China Telecom Group Finance Company Limited with controlling shareholders China
Telecommunications Corporation and China Communications Services Corporation (CCS) (00552)
with the registered capital of Rmb5,000 million.
China Telecom, China Telecommunications Corporation and CCS will respectively contribute
Rmb3,500 million , Rmb750 million and Rmb750 million, which will respectively represent
70%, 15% and 15% of the total registered capital of China Telecom Finance. The
establishment of China Telecom Finance is subject to the approval from the relevant PRC
government authorities, including but not limited to, the China Banking and Insurance
Regulatory Commission.
China Telecom considers the establishment of China Telecom Finance not only reinforces
the efficient centralisation of capital management and revitalises the internal existing
capital, but also fosters the optimisation of resources allocation and savings on external
debts and finance costs. It also enhances corporate capital utilisation efficiency,
assures capital safety and effectiveness as well as improves capital usage efficiency.
Meanwhile, it reduces costs, enhances efficiency and strengthens the capability to control
and prevent financial risks, enabling the perfection and optimisation of financial sector
landscape so as to facilitate the establishment of Internet Finance ecosphere. (HL)