SHARES of Datang Telecom Technology Co, whose sister company is the major developer of China's 3G technology, plunged by the 10 percent daily limit after it projected a second annual loss in 2006.

The loss will now put Shanghai-listed Datang Telecom into a "special treatment" category as it has lost money for two consecutive years, according to China's stock rules. The company, however, predicted in October that it would be profitable last year, following a loss of 696.1 million yuan (US$90.39 million) in 2005.

Datang Mobile, Datang Telecom's unlisted sister firm, is the major developer of China's third-generation standard, the TD-SCDMA (time division-synchronous code division multiple access). Datang Mobile and ZTE are widely expected to win huge 3G deals from China Mobile.

The government would inject three billion yuan in Datang Telecom to help it restructure and Datang Mobile's assets will be put into the listed firm, several media reported recently, which boosted the share price. But all sides later denied the reports.

Source:佚名