Speculation is mounting that China Telecom, part of China's biggest fixed-line phone company, will cut by half the flotation of a 20% stake due to weak demand.

The privatisation has also descended into political wrangling after the company last week announced an eightfold increase in connection fees for international calls to woo investors.

The former state monopoly will now offer 7.56 billion shares at the same price, only 55% of the number originally planned, according to local press reports.

China Telecom abandoned its original listing in Hong Kong late last week, citing weak interest from investors.

Shares of the state-owned telecoms company are now expected to begin trading on 14 November in New York and in Hong Kong the following day, a week later than planned.

China Telecom has not respond to the reports.

The sale was expected to raise $3.68bn (£2.36bn).

Political wrangling

Politicians in Hong Kong have complained that the rise in call charges violated China's vow to help the former British colony out of economic recession.

"I think the issue may have been resolved as several Hong Kong telecom operators have lodged complaints to Beijing," said Ma Lik, a Hong Kong deputy of the National People's Congress, China's legislature.

Over a dozen deputies have called for an inquiry into China Telecom's decision to raise charges.

China Telecom has also offered to increase the dividend it would pay to investors.