China Tower’s Stock Price Drops to 1.11 HKD, Records 1.77% Decline

China Tower (788)

1.11 HKD -0.02 (-1.77%) Volume: 217.16M

China Tower’s stock price currently stands at 1.11 HKD, witnessing a drop of -1.77% this trading session with a substantial trading volume of 217.16M. Despite a minor YTD percentage change of -0.89%, the stock continues to play a significant role in the market.

Latest developments on China Tower

China Tower’s stock price saw movement today following the approval of a share consolidation and capital reduction by the company. This move is expected to benefit institutional investors and long-term dividend payments. The decision by China Tower to restructure its shares has sparked interest among investors, leading to fluctuations in the stock price. The company’s strategic financial moves have garnered attention in the market, with analysts closely monitoring the impact on the stock’s performance.

China Tower on Smartkarma

Analyst coverage on China Tower by Brian Freitas on Smartkarma suggests potential changes in the iShares China Large-Cap (FXI) ETF. According to the reports, China Tower (788 HK) is likely to replace China International Capital Corporation (3908 HK) in the ETF at the close on 20 September. The analysis indicates that there has been a shift in positioning and short interest between the two companies, with more activity observed in CICC. Passives are expected to buy 2x ADV in China Tower, and there may be further adjustments due to the listing of Midea Group Co Ltd A (000333 CH) H-shares before the next scheduled rebalance in December.

Brian Freitas also anticipates changes in the FXI ETF for September, with China Tower being a high probability inclusion and CICC a high probability deletion. The research notes a decrease in shorts for China Tower and an increase in shorts for CICC, along with a flattening out of the cumulative excess volume curve for both stocks. With one confirmed change expected, there is a possibility of another adjustment if Wuxi Apptec underperforms other stocks by 3% in the next 4 weeks. Passives are projected to trade 1x ADV, indicating potential activity in the coming weeks for the iShares China Large-Cap (FXI) ETF.

A look at China Tower Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

China Tower Corporation Limited, a telecommunication company operating in China, has received high scores in Value and Dividend, indicating a positive long-term outlook for investors. With a strong focus on providing telecommunication towers construction and maintenance services, the company’s solid financial performance and consistent dividend payouts make it an attractive investment option.

However, the company scored lower in Resilience and Growth factors, suggesting some challenges in terms of adapting to market changes and expanding its business. Despite this, China Tower’s moderate Momentum score indicates some potential for growth in the future. Overall, investors may want to closely monitor how the company addresses its resilience and growth issues while capitalizing on its strong value and dividend performance.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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