The Chinese media are quoting an unnamed 'inside source' who says that China's second largest fixed phone service provider, China Netcom, might postpone its Initial Public Offering (IPO) of US$1.5 Billion to early 2005 in the hope of solving problems related to its listed structure and negotiations with PCCW.

China Netcom is currently negotiating with PCCW on holding shares of the latter's fixed phone network in Hong Kong and hopes to amalgamate the network with its own ones in the southern provinces. This is thought to be the major reason for the delay.

In addition, the reduced interest of investors in mainland IPOs is perhaps another cause of the postponement.

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