Zhitong Financial APP learned that Fu Rui issued a research report saying that China Telecom Corporation (00728) was given a "buy" rating, and the target price was lowered from HK $4.38 to HK $4.26. The company's second-quarter results were roughly in line with the bank's expectations, with revenue and EBITDA slightly lower than market expectations.

The bank said that the valuation gap of the three major Chinese telecoms stocks had narrowed, the valuations were all attractive, and the price-to-earnings ratio and dividend yield were getting closer and closer, but still preferred China Telecom most. At the same time, it is believed that China Telecom will make use of its 58 billion yuan in net cash and reduce the potential benefits of the discount of H shares to A shares, so as to launch a share buyback plan and reduce the pressure to significantly increase the dividend.