Chinese fixed-line telephone giant China Telecom has applied for stock market listings in the US and Hong Kong, shrugging off worries over weak share prices.

The company hopes to make its stock market debut by October, pending approval from US and Hong Kong stock market regulators.

The flotation, if approved, would give Western investors a chance to put money into fast-growing fixed line networks in China's booming southern and eastern provinces.

Demand for telecoms services is expected to grow sharply in China, where the proportion of the population with access to a mobile or fixed-line telephone remains relatively low.

Jittery buyers

Going public could net China Telecom up to $4bn, strengthening the company's hand against newly-created rival China Netcom Group.

But some analysts have warned that with extreme share price volatility deterring many investors, fewer buyers than expected may come forward.

State-owned China Telecom's determination to press ahead regardless of the stock market's current woes underscores the Chinese government's determination to boost foreign investment and stimulate competition.

China Telecom's stock market launch has been planned for about two years.

Split

The firm was created in May when China's dominant fixed-line monopoly telephone firm, also called China Telecom, was split in two.

The new China Telecom was given a designated catchment area comprising 20 southern provinces, while rival China Netcom Group was allocated 10 northern provinces, including the capital Beijing.

The government is expected to award both companies mobile phone licenses, allowing them to compete with China's established mobile operators China Mobile and China Unicom.