Chinese 6G stocks rally as Beijing accelerates next-generation network push

Chinese telecom and satellite-related stocks rallied on Monday as investors bet Beijing's push to accelerate next-generation communications infrastructure will drive investment in network equipment, satellite internet and related technologies.

Tozed Kangwei Tech surged 20% to 57.48 yuan, its highest level since October 28, while Fiberhome Telecommunications Technologies gained 7% to 28.89 yuan, also reaching its highest since October 28. China Satellite Communications rose 3.6% to 22.75 yuan, its highest since October 30, while Xinlei Compressor added 1.6% to 30.51 yuan.

The gains followed Saturday's report by China's state broadcaster CCTV highlighting plans to accelerate the development of next-generation communications networks, including 5G, 5G-Advanced, 6G, 10-gigabit optical networks and satellite internet.

The report described the infrastructure as a key foundation for connecting digital and physical industries, with future networks increasingly integrating communications, sensing, computing and artificial intelligence.

It also highlighted ongoing 6G testing at Nanjing's Purple Mountain Laboratory, where researchers are evaluating multi-base-station collaborative sensing that could allow communications signals to detect the movement of objects in a manner similar to radar.

Investor sentiment was further supported by China Mobile's launch of a 6G intelligent applications co-creation initiative on November 6, aimed at working with industry partners to accelerate network innovation.

The programme targets 10 application areas, including connected robots, AI-powered devices, immersive communications, industrial intelligence and integrated space-air-ground-sea networks. China Mobile also plans to provide research funding and an open testing platform to support development.

Tozed Kangwei's rally also follows strong first-nine-month results, with revenue rising 52.6% and net profit increasing 189.7%.

The gains reflect expectations of increased investment in China's next-generation communications infrastructure, although widespread commercial deployment of 6G remains some way off.