The $3bn (€3.1bn) to $4bn initial public offering from China Telecom, the state-owned fixed line service company, has been cleared by the Hong Kong Stock Exchange, but the firm still has to put its case to investors.

Merrill Lynch and Morgan Stanley are joint lead managers on the deal, alongside China International Capital Corp, the joint venture between Morgan Stanley and China Construction Bank. Goldman Sachs, Lehman Brothers and Salomon Smith Barney are managing China Telecom's US listing, with BNP Peregrine Paribas, Bank of China International and Crédit Lyonnais Securities Asia managing the Hong Kong listing. Bear Stearns, Cazenove and Nomura are the international coordinators.