M1 & StarHub will price 4G services significantly higher than 3G. Players with bigger exposure to the mobile sector will benefit more. StarHub's FY13F/14F earnings could rise 4%/8%, marginal impact for SingTel even if we ignore the impact of lower data-caps. Our analyst has raised StarHub FY13F DPS to 22 Scts versus expectations of 21 Scts earlier on better longer-term outlook and a very low FY12F net debt to EBITDA ratio of only 0.5x. Maintain HOLD, target price raised to S$3.67 (Prev S$3.50). However, upside for StarHub is limited as 22 Scts DPS is already reflected in the share price. Maintain HOLD for SingTel for 5% yield. Intense competition in India, Australia and startup cost for mobile advertising as key concerns.

Chinese Premier Wen Jiabao said that China is well on track to achieve its 7.5% growth target this year and there's ample room to manoeuvre and inject more money into the system, if need be. Mr Wen insisted that China would maintain stable growth and continue to fine-tune its fiscal and monetary policies. This is similar to what we highlighted in this Monday's Wired Weekly. That is, the Chinese economy is not all that weak, objective continues to be stable growth while keep inflation in check, achieve through fine tuning of selective fiscal and monetary policies. Our economist sees China stimulus shortly after the new leadership takes over. Technical, we maintain our view that the SSEC has bottomed out last week at 2030. If correct, SSEC's pullback yesterday should find support at 2100. We maintain our view for a rise to 2370.