A Study of Impact on the Changes of Telecom Price Policy

This paper tests abnormal returns of policy changes of telecom price, announcements issued by China Mobile and China Unicom, and rumors about unilateral charge on mobile communications. It is found that price policy changes gave more significant impact on China Unicom than China Mobile´s, which was listed later. The impacts of announcements made by China Mobile are more significant than China Unicom´s. But the event of unilateral charge on mobile communications does not have significant impact on the movements of these two companies. It is concluded that industrial policies have more distinct impact on the stock price of later listed company (i.e. China Unicom); while operating environment and the performance changes have more influence on the stock price of early listed company of China Mobile