ZTE Corp, one of the nation's biggest telecommunications equipment vendors, is expected to win the largest share in the third-stage homegrown TD-SCDMA tender by China Mobile Communications Corp, according to industry analysts.
The news came as Citibank and HSBC Holdings revised up the rating and price target of ZTE yesterday, which sent the company's shares up 8.9 per cent to close at HK$28.75.
ZTE, Huawei Technologies, Datang Mobile, New Postcom, together with foreign vendors Ericsson and Nokia Siemens Networks, are bidding for the contract valued at 8.6 billion yuan (HK$9.8 billion).
HSBC analyst Tucker Grinnan said ZTE would solidify its leading position in the TD-SCDMA market by winning about 30 per cent of the contract that covers 200 cities across the mainland.
'If ZTE wins the major share, this should establish its dominant position in the long term,' Mr Grinnan said.
Another industry analyst said ZTE would end up with 35 per cent of the tender, while Huawei and Nokia Siemens Networks could each win 30 per cent.
