China Netcom, the country's second-largest fixed-linetelephony group, is trying to allay investor concerns over its HK$8.2bn (US$1.05bn) overseas listing by offering fund managers a low valuation and high dividend yield, analysts and bankers said yesterday.

However, the initial public offering could be hard tosell as investors are worried about the company's growth prospects and the poor performance of IPOs by Asian telecoms groups.