Negative outlook for China Unicom

Many market analysts have given a negative outlook for China Unicom this year.

The annual growth rate of the company's profits will drop by somewhere between 9 percent and 22 percent this year, while its expenditure will reach 77 billion yuan (US$12.19 billion), up by 7 percent year-on-year, Deutsche Bank has predicted.

Both the subsidies that the company offers to its 3G subscribers and its investment in technological development will grow, which will likely shrink the company's profit margin, said Chen Fengzhu, an analyst from Shenyin & Wanguo Securities.