China Telecom Corp rose to the highest in a month in Hong Kong trading after Credit Suisse Group said a government plan to let the nation's biggest fixed-line operator offer wireless services was close to being approved.

The Beijing-based carrier's stock rose 2.7 percent to HK$6.37 (82 US cents), headed for the highest close since January 18 in Hong Kong trading yesterday. The Hang Seng Index fell 0.9 percent.

A final plan for the government-led reshuffle of China's telephone industry has been submitted to the nation's Cabinet for approval, analysts Jeffrey Tan, Terry Chan and Wallace Cheung wrote in a report yesterday, citing people they didn't name. The plan may allow China Telecom to add wireless operations by buying one of China Unicom Ltd's two mobile-phone networks, it said. "We expect some form of an announcement by the first half of 2008," the Credit Suisse analysts wrote. They rate the stock as "neutral."

China Netcom rose 0.6 percent to HK$25.95, and China Unicom rose 0.1 percent to HK$19.46 in Hong Kong.