China Stock Market Research & China Stock Analysis

China Unicom- CHU - 0762 China Unicom Limited was incorporated in Hong Kong in February 2000.

The Company was listed on the New York Stock Exchange and the Stock Exchange of Hong Kong on 21 June 2000 and 22 June 2000 respectively. On 1 June 2001, the Company was included as a constituent stock of the Hang Seng Index.

China United Telecommunications Corporation ("Unicom Group") is the major shareholder of the Company. As of 31 December 2007, Unicom Group indirectly and effectively holds 48.34% of shares in the Company through China Unicom (BVI) Limited and China United Telecommunications Corporation Limited. The public investors of the A Share market in Shanghai indirectly and effectively hold 22.99% of shares and SK Telecom holds 6.60% of shares in the Company. The remaining 22.07% of shares in the Company are held by public investors in Hong Kong and New York.

The Company completed the acquisition of its cellular businesses and GSM network assets in Guizhou Province on 31 December 2007. At present, the Company is engaged in the cellular business (both GSM and CDMA) in 31 provinces, municipalities and autonomous regions in China through China Unicom Corporation Limited, the provision of international and domestic long distance calls, data and Internet services, and other related telecommunication value-added businesses.

As to its cellular business, the Company is one of the two mobile telecommunications operators in the PRC. As of 31 December 2007, the Company had a total number of 162.491 million subscribers for its GSM and CDMA cellular businesses, of which, GSM service had 120.564 million subscribers and CDMA service had 41.927 million subscribers.

The Company has constructed the second largest broadband optical fi ber transmission network in the PRC as a shared platform that supports the operations of cellular business, international and domestic long distance calls, data and Internet. This network has provided a good support for network resources to facilitate the rapid development of the Company's various businesses.

The Company operates telecommunications businesses in Hong Kong and USA through its wholly-owned subsidiary China Unicom International Limited. After the launch of local mobile communications service on 18 October 2006 in Macau, China Unicom (Macau) Limited which is registered in Macau and invested by the Company officially launched 3G service on 18 October 2007 in Macau.