Chinese telecom stocks listed in Hong Kong surged on Tuesday after the country's top telecoms official said Beijing may issue long-awaited third-generation (3G) mobile network licences soon.
Expectations that the country's two big fixed-line operators could be the first to start 3G business in China sent stock in the larger of the two, China Telecom up by 15.6 percent to close at HK$4.01.
Smaller rival China Netcom saw its shares finish up 8.5 percent, at HK$16.16. Both stocks beat the 2.12 percent gain in the index for Chinese companies listed in Hong Kong. "The fixed lines will get 3G first to compensate for their limitations in the past," said Steve Cheng, associate director at Shenyin Wanguo.
"They're way behind China Mobile "he added, referring to the world's largest cellular carrier, an investor favourite. Wang Xudong, who heads the Ministry of Information Industry (MII), was quoted as saying in Chinese media on Tuesday that the government may soon issue long-awaited 3G mobile licences.
"I cannot provide a specific timetable, but it could happen very soon," he was quoted as saying by the China Daily. Industry executives have been waiting as long as eight years for signs that China was getting close to launching next-generation mobile services.
China Netcom (Hong Kong) CEO Zuo Xunsheng also said on Tuesday that Beijing might issue the first 3G operating licence by the end of 2006 or the first quarter of next year.