By Yin Lei
China’s institutional investors intensified their research on A-share firms specializing in the 5th generation mobile networks technologies (5G technologies) as this concept gathered momentum at the market, said a report of China Securities Journal on Monday.
Last week, securities dealers and fund firms in China conducted close to 50 investment researches on seven A-share companies with 5G-related businesses, including three information communications technology (ICT) firms, three electronics companies and one mechanical player.
This surge in the attractiveness of 5G concept stocks came amid news that China’s three telecom carriers, namely China Mobile Communications Group Co., Ltd., China United Network Communications Group Co., Ltd. and China Telecom Corporation Limited, had all obtained a greenlight to pilot their 5G technologies across the country. These technical experiments are expected to usher in the 5G era at home.
China’s institutional investors foresee far higher amounts of investments in the 5G technologies than those in the 4G ones.
The total 5G investments from the above three telecom service providers may amount to 1.4 trillion yuan (202.96 billion U.S. dollars), 60 percent higher than those in the 4G technologies, according to the China Academy of Information and Communications Technology (CAICT).
An earlier estimate by the CAICT in November 2017 showed that based on a target of providing continuous coverage to 30 percent of Chinese territory in the next ten years, investments in the 5G technologies at home could reach 700 billion yuan (101.48 billion U.S. dollars) during this period.