CHINA GALAXY SECURITIES CO., LTD. By Sherry Qin
Shares of ZTE and other Chinese telecom-equipment makers rose sharply after countries including the U.S., Japan and the U.K. issued a statement endorsing principles for the development of global 6G networks.
ZTE's Shenzhen-listed shares rose 10%, their daily limit, while its Hong Kong shares ended 11% higher Tuesday. Shares of Sunshine Global Circuits, an integrated circuit board manufacturer, and Shaanxi Huada Science Technology, an electronic-connector maker, rose 20% each, while Shennan Circuits rose 10%.
The gains came shortly after the U.S. and nine other countries released a statement urging support for principles of national security, privacy and others in the development of global 6G networks.
"We believe this to be an indispensable contribution towards building a more inclusive, sustainable, secure, and peaceful future for all, and call upon other governments, organizations, and stakeholders to join us in supporting and upholding these principles," the statement said.
They said they would encourage the adoption of related policies in their countries and others and "advance the research and development and standardization of 6G networks."
The United Nations' International Telecommunication Union said in December that it hopes to have a set of 6G technology standards approved by 2030. It said the next-generation wireless network is expected to integrate multidimensional-sensing and artificial-intelligence capabilities, creating a new digital infrastructure that enables near real-time connections.
ZTE has been actively exploring 6G technologies and has published papers on 6G application scenarios.
6G is currently in the stage of standard formulation and prototype testing, China Galaxy Securities said in a recent research note. In upgrading from existing networks, countries with "core advantages in the previous generation of technology," such as China, are more likely to "achieve further technological leadership," it said.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
02-27-24 0614ET
