China Netcom Group Corporation cut its debt by 17% in the first half of 2004, in an effort to improve its chances of raising $1.5 billion selling shares.

Netcom, cut its debt by 11.9 billion yuan (US$1.4 billion) in December to 58 billion yuan as of June 30, as it transferred debt to its parent. The reduction may reduce concerns that the company holds excessive debt as it prepares for an initial public offer as soon as October. Netcom's plans to spend 70.7 billion yuan in the three years to 2006 on new networks and rising competition from cellular phone operators may deter investors.