September 22, 2010 (Chinavestor) China Unicom (NYSE:CHU) shares were lower by 3.3% in Hong Kong trading after Deutsche Bank downgraded the stock to "sell" from "buy," citing slack 3G subscriber growth. The German bank issued its "buy" rating on China Unicom (NYSE:CHU) in February.
"Total net adds remain broadly flat despite increasing subsidies and promotions from May and we subsequently reduce our long-term 3G subscriber forecasts. In addition, we revise up our mobile and fixed [capital expenditure] over the next few years,” Deutsche Bank said in its report.
The downgrade comes just days before China Unicom's (NYSE:CHU) introduction of Apple's (Nasdaq:AAPL) iPhone 4 on mainland China. China Unicom (NYSE:CHU) is the lone Chinese carrier to provide access to Apple (Nasdaq:AAPL) products. The company took nearly 50,000 pre-orders for the iPhone 4 on Sept. 17, the first day it started accepting such orders, according to Dow Jones Newswires.
China Unicom (NYSE:CHU) said it added 1.69 million new subscribers in August. For details about August subscriber growth, visit China Unicom 3G growth surpasses 2G