JPMorgan Chase publishes research reportspincasinoIf the policy of waiving dividends and profits tax on Hong Kong Stock Connect is implemented, it is expected that more funds will flow into Chinese telecommunications stocks listed in Hong Kong, because the dividend returns of these stocks are relatively high, with a dividend yield of about 8%, and the average annual compound growth rate per share of dividends exceeds 10%. It is extremely attractive and maintains an "overweight" rating on Chinese telecommunications stocks.

After the news broke out last Friday, the stock price of Chinese telecommunications stocks rose. Moto pointed out that considering that the H-share price of Chinese telecommunications stocks still has a discount of more than 30% to A shares after the rebound last Friday, China Unicom's H-shares have the largest discount to A shares, and it is expected to be the biggest beneficiary of this measure. It is optimistic about Unicom in the short term and will choose China Mobile in the long term.

As for Hong Kong telecom operators, the bank expects Hong Kong Broadband and PCCW to benefit. Since Hong Kong Telecom has not been included in the Hong Kong Stock Connect, MoCom expects that its potential inclusion and possible divestiture of its optical fiber business will become an upward catalyst.