Xiaomi, ZTE and Chinese 5G stocks rally as Shenzhen becomes first mainland city to be covered by high-speed telecom network
- Shenzhen’s entrance into the 5G era unleashes buying of stocks including Xiaomi, ZTE and China Tower
- Traders boost 5G stocks as they expect the roll-out of the high-speed telecom network to be accelerated across the country
Xiaomi, China’s biggest smartphone maker, jumped 5.6 per cent to HK$16.20 on Monday, capping the biggest gain in almost six weeks. ZTE added 4 per cent to HK$23.30 and its Shenzhen-traded stock rallied 4.9 per cent to 40.25 yuan. China Tower also rose in Hong Kong.
Fuelling the buying interest in the 5G sector was the comment made by Shenzhen mayor Chen Rugui at a press conference on Monday morning that the city now has access to the pure 5G networks. That was interpreted by traders as a sign that Shenzhen has officially entered the 5G era and construction of the new networks will be accelerated in rest of the country.
A gauge tracking 5G-related stocks trading on the mainland's exchanges climbed 1.9 per cent on Monday, according to data provider Shanghai DZH.
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