Glonghui, May 14 | J.P. Morgan Chase published a research report saying that if the policy on exempting Hong Kong Stock Connect dividend profits tax is implemented, it is expected that more capital will flow into Hong Kong-listed Chinese telecommunications stocks, because the dividend return of such shares is relatively high, with a dividend rate of about 8%. The compound annual growth rate of dividends per share exceeds 10%, which is very attractive and maintains a “gain” rating for China Telecom stocks. After news broke last Friday, Chinese telecom stock prices rose. According to Motong, considering the rebound last Friday, the H share price of Chinese telecom stocks still had a discount of more than 30% compared to A shares. Since China Unicom's H shares have the biggest discount compared to A shares, it is expected that they will be the biggest beneficiary of this measure. They are optimistic about Unicom in the short term and choose China Mobile in the long term. As for Hong Kong telecom operators, the bank expects Hong Kong Broadband and PCCom to benefit. Since HKT has not been included in the Hong Kong Stock Connect, Motong expects that the potential inclusion and possible divestment of the optical fiber business will be an upward catalyst.