China Netcom, the country’s second largest fixed line operator, has agreed to buy a 20 per cent stake in PCCW, its Hong Kong rival, for up to $1 billion.

China Netcom, the country’s second largest fixed line operator, has agreed to buy a 20 per cent stake in PCCW, its Hong Kong rival, for up to $1 billion. This would be one of the largest investments by a Chinese company in Hong Kong. It would also make Netcom PCCW the second largest shareholder after Richard Li, the company’s chairman.