China Netcom Group Corp has designated three underwriters for its planned listing on the Hong Kong and New York stock markets, a move expected in the third quarter of this year.

The companies chosen are China International Capital Corporation, Goldman Sachs and Citigroup.

China Netcom is expected to raise a total of US$2 billion in capital on the Hong Kong market.

"All the details about the listing will be announced during the Spring Festival," an official from China Netcom said yesterday, but refused to confirm the amount.

Last week, Zhang Chunjiang, general manager of the group, told China Daily as far as planning for the listing is concerned, the company is shifting into high gear.

It has been widely reported that China Netcom is in talks with many major investment banks for listings in Hong Kong and New York before it considers a domestic listing.

It is currently the only one among the country's four major telecom operators that is not listed yet.

As proof of its aggressive approach to going public this year, operations at China Netcom Southern Communication Co Ltd (Netcom South), a subsidiary of China Netcom, began yesterday.

Company headquarters for this subsidiary will be set up in Shanghai's Zizhu Science-based Industrial Park, which lies in the southwestern part of the most active trade hub.

Total investment of the southern arm will amount to over 15 billion yuan (US$1.8 billion).

Edward Tian, president of China Netcom International, launched in November, was named president of Netcom South.

He says his company has already recruited more than 6,000 employees.

The southern subsidiary will mainly focus on major accounts, especially large companies and broadband service.

Tian says that the company has so far supplied fiber optic access to over 40 per cent of the most important buildings in the South China region.

He also pointed out that the company has already established mature direct selling and distribution networks as it had business operations in the South China region for more than four years.

He believes that based on these existing networks, the company will strive to double the total revenue of the southern subsidiary by the end of 2004.

The subsidiary was launched just one week after the inauguration of China Netcom's northern subsidiary.

Analysts believe the head of China Netcom is accelerating its corporate restructuring to meet the set date for its listing.

According to Zhang's blueprint, after the forming of the three subsidiaries, the next step is to establish China Netcom Shareholding Co Ltd, enabling the company to go public in the middle of this year.

The listed company is supposed to purchase assets from its parent company step by step.

"All the purchases will be finished before the end of 2006," Zhang said.

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