China Netcom Group Corporation (Hong Kong) Limited, a listed company of China Netcom (CN), is reported to have separated its underperforming network assets in Guangdong and Shanghai and handed them over to its parent company China Netcom Group so that they do not affect its overall performance as a listed company.
Local media reports that the main reason for China Netcom to peel off the assets in the two regions is that the excessive fixed asset investment that it has made in its expansion in the southern China market has encumbered its overall performance.
At present, China Netcom's main assets lie in northern China. While in the southern part of the country, its market share is far lower than that of its competitor China Telecom, and its businesses in Shanghai and Guangdong are operating at a loss.
China Netcom has not responded to the these reports or rumors.