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Rumor: Chinese Government Launches Probe of Major Telecoms

Beijing Morning Post, 5/30/11

According to a report from Caixin.com, the Central Commission for Discipline Inspection of the Communist Party of China has launched an anti-corruption investigation into China's three major telecom operators, namely China Telecom (NYSE: CHA; 0728.HK), China Mobile (NYSE: CHL; 0941.HK) and China Unicom (NYSE: CHU; 0762.HK; 600050.SH).

According to industry sources, a preliminary investigation will continue until the beginning of June, and in that time, mid-level managerial staff and higher at the three major telecom operators will be required to hand in their passports.

From 2009 up until this year, several senior executives from China Mobile, most notably executives from its mobile music and other data value-added services businesses, have been punished due to corruption scandals.

Keywords: regulation China Telecom China Mobile China Unicom wireless Central Commission for Discipline Inspection CHL 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU scandal

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