ZTE shares jump to over two-month high on China handset demand
HONG KONG (Reuters) - Shares of ZTE Corp (0763.HK) (000063.SZ), the world's sixth-largest handsets maker, rose more than 6 percent to hit a more than two-month intraday high on Friday as smartphone demand is forecast in China is forecast by analysts to remain strong.
ZTE's Hong Kong-listed shares rose as high as HK$12.5, up 6.8 percent and hitting their strongest intraday level since July 13. The gain outpaced the main Hang Seng Index's .HSI 0.5 percent gain.
China Mobile (0941.HK), the country's largest mobile carrier, expects to sell 100 million consumer devices, mainly handsets, next year. Of those, 80 percent will be smart devices such as smartphones, Chinese media quoted China Mobile's CEO Li Yue as saying at an industry event in Beijing.
"ZTE is one of the major handset providers of China Mobile, so the comments will benefit the company," said Michael Li, an analyst with Everbright Securities in Hong Kong.
TCL Communication Technology Holdings Ltd (2618.HK), another Chinese handset maker, also saw its shares gain 7 percent in midday trade.
ZTE, which is China's second-largest telecom equipment maker, is likely to get almost a 30 percent market share of China Mobile's 4G TD-LTE trial projects, which also helped boost sentiment, analysts said.
(Reporting by Vikram Subhedar and Lee Chyen Yee; Editing by Anne Marie Roantree and Matt Driskill)