By Clarence Leong

China's telecommunications stocks have been buoyed by hopes that a new round of 5G-related tenders could take place soon.

The Hong Kong-listed shares of China Tower Corp. surged 5.7%, while those of ZTE Corp. and China Communications Services Corp. rose 6.0% and 3.3%, respectively, compared with Hong Kong's benchmark Hang Seng Index, which was down 0.8%.

The sector may be playing catch-up after underperforming this year, China Galaxy Securities analyst Mark Po said. Some stocks had been trading at low valuations due to a delay in 5G rollout that was expected to take place in the first half, he said.

Other smaller cap stocks in the sector were also performing well. Comba Telecom Systems Holdings Ltd. soared 9.2%, while Yangtze Optical Fibre & Cable JS Ltd. advanced 3.5%.

Among the stocks mentioned above, all but ZTE have fallen between 0.3% and 5.7% year to date. ZTE shares have recently recovered from a low point in mid-May and were 13% higher so far in 2021.

Write to Clarence Leong at clarence.leong@wsj.com

(END) Dow Jones Newswires

06-03-21 0256ET