Why Jefferies' Lee Is Underweight China Mobile

The video discusses a company's 20th anniversary on the Hong Kong Stock Exchange, highlighting financial challenges such as rising competition and high capital expenditures. It addresses investor demands for higher dividends and the impact of government-mandated tariff cuts. The competitive landscape is analyzed, focusing on Unicom's potential growth and China Mobile's pricing pressures. The video concludes with the impact of government policies on telecom prices and revenue.

What is one of the main reasons the company is considering a special dividend?

• To respond to investor demand

• To reduce competition

• To increase capital expenditures

• To celebrate their 20th anniversary

How might Unicom's mixed ownership reform affect its market position?

• It will reduce its customer base

• It will increase its capital expenditures

• It will decrease its network capacity

• It will allow for more aggressive pricing

What is a potential consequence of China Mobile's high network utilization?

• Increased pricing pressure

• Decreased customer satisfaction

• Reduced capital expenditures

• Lowered competition

What is one reason for the expected loss in voice revenue?

• Higher capital expenditures

• Cancellation of roaming fees

• Government subsidies

• Increased competition

What is the government's overall objective in the telecom industry?

• To lower prices for consumers

• To expand network capacity

• To boost company profits

• To increase competition