China Netcom, the country's No. 2 fixed-line phone firm, aims to launch its US$1.5 billion IPO in Hong Kong and New York as early as September.

China Netcom has been in talks with Hong Kong-based PCCW to invest in the core operating business of the city's biggest fixed-line carrier. A deal with PCCW, if reached, would be made by China Netcom's parent company, not the listing firm. Netcom took its present form in 2002 when it merged with former fixed-line monopoly China Telecom's networks in 10 provinces.