A retail-fueled equity boom followed, swelling the combined value of 32 Huawei suppliers tracked by Bloomberg by about $34 billion since the launch, defying a selloff in the broader market.<\/p>\n
\u201cHuawei has been one of the few bright spots, in both the market and as a watershed in boosting people\u2019s confidence on the nation\u2019s outlook,\u201d said Cheng Hao, a fund manager at Zhejiang Feiluo Asset Management Co.<\/p>\n
While the stock trading shows \u201csigns of speculation, there is real value, and it has potential for the longer run.\u201d<\/p>\n
The company has long been a lightning rod for global trade tensions.<\/p>\n
US trade curbs limited its access to technology, gutting its sales and dealing a major setback to its smartphone business.<\/p>\n
Meanwhile at home, Huawei \u2014 whose name is written with characters that can mean \u201cChinese achievement<\/a><\/strong>\u201d \u2014 continued to receive solid government backing.<\/p>\n The Mate 60 Pro, featuring a homegrown high-tech semiconductor, is being hailed as a triumphant return to mobiles, burnishing national pride in the company.<\/p>\n The phone is powered by a new Kirin 9000s chip that was fabricated in China by Semiconductor Manufacturing International Corp.,\u00a0according to<\/a><\/strong>\u00a0a teardown of the handset that TechInsights conducted for Bloomberg News.<\/p>\n The processor is the first to utilise SMIC\u2019s most advanced 7-nanometer technology and suggests Beijing is making some headway in attempts to build a domestic chip ecosystem, according to the research firm.<\/p>\n Reports in the past week of strong early demand for a Huawei-backed\u00a0electric vehicle<\/a><\/strong>\u00a0have also added to the positive news flow.<\/p>\n Mainland-listed shares of Huawei\u2019s chipmaking partner SMIC have climbed about 12% since the smartphone\u2019s launch.<\/p>\n Huawei EV partner Seres Group Co. has more than doubled over the same period, while software supplier Isoftstone Information Technology Group Co. has jumped 60%, making them the top two performers on the MSCI Asia Pacific Index.<\/p>\n The big gains contrast with overall weakness in Chinese stocks amid a housing market slump and deflationary pressures.<\/p>\n The CSI 300 Index of mainland stocks is down more than 5% in 2023, on track for a third consecutive year of losses.<\/p>\n Positive state media headlines and a wave of patriotic celebration on social media have helped fuel feverish retail investor interest in Huawei-related companies.<\/p>\n At the same time, China\u00a0plans<\/a><\/strong>\u00a0to expand a ban on the use of iPhones in sensitive departments to government-backed agencies and state companies, people familiar with the matter<\/p>\n Previous China equity drivers, including Internet giants like Tencent Holdings Ltd. have been struggling to find new growth opportunities that excite investors.<\/p>\n Themes from artificial intelligence to state-owned enterprise reform failed to provide lasting boosts for the fickle retail-dominated market, leading some to caution that the Huawei-related trades could face similar fates.<\/p>\n \u201cThese supplier companies have not yet seen significant growth driven by Huawei,\u201d said Fanwei Zeng, an analyst at GAM Hong Kong Ltd.<\/p>\n \u201cWe believe investors are likely to lose interest when they find other hot topics in the future.\u201d<\/p>\n How much further the theme runs may depend on Huawei\u2019s success with upcoming product releases.<\/p>\n The company has other EVs in the works with a number of partners, and continues to launch new tablets, smart TVs and wearables as well as smartphones.<\/p>\n Political risk could even be seen as an opportunity by local investors.<\/p>\n \u201cHuawei sentiment is likely to stay in place as long as tensions with the US remain high and China\u2019s economy struggles,\u201d said Shen Meng, a director at Beijing-based investment bank Chanson & Co.<\/p>\n \u201cFew companies in China enjoy the same level of attention and publicity.\u201d<\/p>\n The value of 32 Huawei suppliers has ballooned since the launch of the Mate 60 Pro.<\/p>\n","protected":false},"author":341034,"featured_media":507222,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[129,63291,1982,88928,89134,52563],"class_list":["post-511448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china","tag-chinese-tech","tag-huawei","tag-huawei-mate-60-pro","tag-kirin-9000s","tag-smartphone-manufacturing"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/511448"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=511448"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/511448\/revisions"}],"predecessor-version":[{"id":511454,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/511448\/revisions\/511454"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/507222"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=511448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=511448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=511448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/10\/Huawei-suppliers-soar_Bloomberg-graph.jpg\")
<\/p>\nNow read: Most popular smartphones in South Africa \u2014 Samsung, Apple, Huawei, Oppo dominate<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"