Over the past three months, the stock prices of the three major Chinese telecom operators, namely CHINA MOBILE (00941.HK)  -0.400 (-0.467%)    Short selling $389.36M; Ratio 25.522%   , CHINA TELECOM (00728.HK)  -0.020 (-0.348%)    Short selling $102.41M; Ratio 21.533%   , and CHINA UNICOM (00762.HK)  -0.110 (-1.202%)    Short selling $66.01M; Ratio 27.479%   , have underperformed the HSI, according to a research report by JPMorgan.

From JPMorgan's perspective, however, the current dividend yields of the three telecom operators are attractive, with expected full-year dividend yields for CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM at 6.3%, 5.4%, and 5.6%, respectively. As the slowdown in traditional telecom service revenue growth in 3Q compared to 2Q has also been reflected in the recent weak stock performance, the broker suggested investors should take advantage of the lagging stock prices to buy.

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Bullish about the three telecom operators in light of their attractive shareholder returns, healthy profit growth, and potential cloud service revenue growth driven by AI, JPMorgan specifically named CHINA TELECOM as its top pick with a target price of HKD7.5, given its largest cloud business exposure and the resilience of its traditional mobile and broadband services.

CHINA MOBILE and CHINA UNICOM were given a target price of HKD110 and HKD12, both with an Overweight rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-17 16:25.)