As the peak period for 5G capex ends, the capex of Chinese telecoms is on a downtrend, HSBC Global Research said in a report. All companies expressed a focus on shareholder returns, and with industrial internet businesses such as cloud and data centers supporting profit growth, it is expected that future dividend growth for telecoms will be driven by multiple favorable factors.

The broker upgraded CHINA MOBILE (00941.HK)  -0.500 (-0.576%)    Short selling $72.53M; Ratio 14.657%   from Hold to Buy, naming it the top pick in the industry, and raised the target price to HKD107. The forecast for 2025's dividend yield is as high as 6.4%, the highest among its peers. The broker also believed that the expansion of cloud business will improve the EBITDA profit margins of both CHINA MOBILE and CHINA TELECOM (00728.HK)  -0.110 (-1.937%)    Short selling $5.82M; Ratio 3.615%   . The broker raised CHINA TELECOM's TP to HKD6.8, maintaining a Buy rating, with 2025's dividend yield forecasted at 5.3%.

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CHINA UNICOM (00762.HK)  -0.230 (-2.434%)    Short selling $39.58M; Ratio 18.779%   is predicted to have the fastest dividend growth rate among the three major telecoms, with a CAGR of 10% from 2024 to 2027. Hence, HSBC Global Research maintained its Hold rating due to profits being driven by one-time non-operating items, and raised the target price to HKD9.6, with 2025's dividend yield expected to reach 5.1%.

As for CHINA TOWER (00788.HK)  -0.260 (-2.245%)    Short selling $10.51M; Ratio 17.498%   , the broker kept a Hold rating, assuming that price negotiations with the three major telecoms by the end of 2027 remain an unresolved issue.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-19 12:25.)