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China's telcos surge amid global 5G push
[BENGALURU] Shares in Chinese telecommunications companies surge on Tuesday as investors expect Beijing to step up support for the 5G network development amid the intensified global competition for the key infrastructure.
The 5G technology, which can provide data speeds at least 20 times faster than 4G, is seen as essential for emerging technologies from self-driving cars and smart cities to augmented reality and artificial intelligence.
An index tracking major Chinese telecoms firms leaps as much as 5.7 per cent, having gained more than 40 per cent so far this year.
A dozen firms including Shenzhen Sunway Communication, Nanjing Panda Electronics and Tongyu Communication all shoot up by their 10 per cent daily trade limit.
Shenzhen shares of China's No 2 telecom equipment maker ZTE Corp soar the maximum allowed 10 per cent to a 13-month high, having more than recovered its lost ground last year caused by a US government ban on American firms selling parts to the firm, and a subsequent US$1.4 billion settlement.
ZTE spikes as much as 8.1 per cent in Hong Kong.
The proactive 5G development in overseas countries, including the commercial application of the tech in the United States and South Korea, would prompt China to accelerate its 5G efforts, Guosheng Securities wrote in a report.
The pace of China's 5G development would be quickened, as the global 5G competition has kicked off, with countries allocating 5G spectrum to promote investments in the sector, AJ securities said in a note.
US President Donald Trump said the United States should not nationalise its 5G network; and added that private companies should move quickly to deploy the faster next-generation network.