HK Stock Market Move | The three major telecommunications operators opened lower this morning, and the increase in the value-added tax rate for basic telecommunications services to 9% will affect the company's revenue and profit.

In early trading, the three major telecom operators opened lower: China United Network Communications (00762) fell 7.04% to 7.39 Hong Kong dollars, China Telecom Corporation (00728) fell 6.32% to 5.04 Hong Kong dollars, and China Mobile Limited (00941) fell 2.26% to 78 Hong Kong dollars. In terms of news, the Ministry of Finance and the State Administration of Taxation recently issued a notice regarding the specific scope of value-added tax collection, which will come into effect on January 1, 2026. It stipulates that the business activities of providing mobile data services, SMS and MMS services, and internet broadband access services using fixed-line, mobile, satellite, and internet will be subject to a VAT adjustment from 6% to 9%. China Mobile Limited, China United Network Communications, and China Telecom Corporation announced on February 1 that the applicable scope of value-added tax for telecommunications services will be adjusted, with the tax rate increased from 6% to 9%, which will impact the company's revenue and profits. Industry analysts believe that this adjustment is to clarify the nature of the tax items rather than increase the tax burden, as it is a reasonable definition of the tax treatment for telecommunications services. This adjustment further clarifies the public nature of basic communication services, promoting operators to focus more on network construction, service support, and core business, reducing redundant marketing competition, improving the overall operational efficiency of the industry, and promoting the high-quality development of digital economic infrastructure.