(Yicai Global) Nov. 4 -- China Telecommunications, one of the nation's biggest wireless carriers, has refuted a rumor of signing a new strategic partnership with e-commerce giant Alibaba Group Holding.

The mobile operator, also known as China Telecom, said the news about the alleged agreement penned this week is untrue, China Securities Journal reported today.

Hearsay that was circulating online this week claimed that the two behemoths penned an agreement during an industry forum held on Nov. 2. Daniel Zhang, chief executive of Alibaba, and Ke Ruiwen, chairman of China Telecom, were said to have been present at the ceremony. The idea inspired traders as China Telecom's shares [SHA:601728] closed up 1.8 percent at CNY4.03 (60 US Cents) on Nov. 2, after rising as much as 4.8 percent intraday.

Actually, the pair is already cooperating. In May 2017, China Telecom and the Taobao operator inked a comprehensive partnership contract. They have teamed on multiple fields such as e-commerce, network infrastructure and security, marketing, cloud computing, payments, rural channels, the Internet of Things, as well as corporate procurement.

This is not the first online topic about a state-owned mobile carrier and an internet titan this week. China Unicom and an affiliate of Tencent Holdings formed a joint venture on Nov. 2, which sparked rumors of a mixed-ownership reform that prompted a limit-up stock price surge in the carrier.

On Nov. 2, China Unicom said the establishment of the JV is part of normal business collaboration and will not impose major impacts on the company’s current operations, resulting in a falling share price the following day.

Editor: Emmi Laine, Xiao Yi