Shares in China Telecom, the state-owned fixed-line operator, were trading down 7% on the firm's debut on the New York Stock Exchange, as predicted by analysts who said the $1.4bn (€1.4bn) initial public offering was overpriced.

The deal has been plagued by lack of investor interest. Marketing for the IPO was relaunched last week after bookrunners Morgan Stanley and Merrill Lynch cut the number of shares on offer by 55% to ensure a sell out because demand was so poor.