Share prices in China's telecoms companies have plummeted, after investors gave a thumbs-down to the government's reforms of the industry.

This morning, share trading was described as 'skittish' after heavy losses in previous sessions.

According to Forbes, investors are terrified that the industry revamp would slow earnings growth. They fear that restructuring will raise the cost for companies who enter the mobile market, as fresh investments will have to be made.

Ironically, China Mobile, which has the most to lose in the revamp, has managed to retrieve a bit of the value it lost in the last few days.

The plan is for Unicom to buy fixed-line phone network China Netcom in a share swap valued at about $23 billion, while China Telecom pays $15.7 billion for Unicom's smaller mobile phone network.

The idea is that it will increase competition for China Mobile, China's largest wireless carrier, while allowing fixed-line carriers to provide mobile phone services. X

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