Any easing of tensions between the U.S. and China comes as a big relief to ZTE
SHANGHAI: Telecom, tech, auto companies and shipping firms are among the biggest gainers in China and Hong Kong after the trade truce between Washington and Beijing.
Telecommunications:
ZTE Corp. surges as much as 11 percent in Hong Kong to the highest intraday price since July 18.
Any easing of tensions between the U.S. and China comes as a big relief to ZTE’s investors after the U.S. government briefly banned the company’s purchase of parts from American suppliers earlier this year.
Technology:
Hangzhou Hikvision Digital Technology Co. gains as much as 10 percent in Shenzhen, while an information technology gauge rises as much as 5.3 percent to lead gains on MSCI China.
Investors were concerned that surveillance stocks like Hikvision could be among the first hit by an escalation of the trade spat.
Zhejiang Dahua Technology Co., whose first-half results missed estimates due to impact from the trade tensions, jumps as much as 8.4 percent, while Shenzhen Infinova Ltd. rises as much as 4.3 percent.
Auto companies:
Nexteer Automotive Group Ltd. climbs as much as 7.8 percent in Hong Kong, while Guangzhou Automobile Group Co. rises as much as 7.9 percent.
A tweet from President Donald Trump spurs rally for auto dealers. China Grand Automotive Services Co. surges as much as 10 percent, while China Yongda Automobiles Services Holdings Ltd. soars 10 percent and Pang Da Automobile Trade Co. gains 9.4 percent.
China has agreed to “reduce and remove” tariffs on American-made cars, a claim that wasn’t immediately confirmed by Beijing.
If China cancels tariffs on high-end imported cars, that should benefit dealerships as the prices will be lower, said Angus Chan, Shanghai-based analyst with Bocom International Holdings Co.
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