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China telecom equipment stocks jump after Reuters exclusive

Major Chinese telecom equipment makers` stocks leapt between 20-30 percent in two days after Reuters broke news on Nov 19 that China Mobile, the world’s largest wireless carrier, had signed off an estimated $4 billion network contracts. China’s No.2 telecoms gear vendor, ZTE, rose 20 percent, The news reassured investors that China’s government-orchestrated plan to roll out high-speed third-generation wireless services to its 1.3 billion people was on track, billions of dollars in telecoms infrastructure spending for gear makers in coming years. Reuters story forced Dow Jones to come up with a matcher about four hours later, and Bloomberg after that. Goldman Sachs wrote a research note for clients centred around five points Reuters reported, including 3G`s progress, ruling out of a share buyback and an increase in capex.

Article Tags
Type: Reuters Best
Sectors: Equities
Regions: Asia
Countries: China