April 9 (Bloomberg) -- Fiberhome Telecommunication Technologies Co. led Chinese phone equipment producers higher after the government said it will boost the investment in so-called third-generation cellular networks.
Fiberhome Telecommunication jumped 7.5 percent to 31.45 yuan at the close in Shanghai, the biggest gain in three months. The benchmark Shanghai Composite Index rose 0.9 percent.
China will boost its investment in 3G mobile-phone services to 400 billion yuan ($58.6 billion) by 2011, the Shanghai Securities News reported today, citing a statement jointly released by eight ministries, including the Ministry of Information Technology.
China will build 400,000 base stations to transmit phone signal, and expects 150 million 3G mobile-phone users next year, the newspaper said.
Jiangsu Hengtong Photoelectric Stock Co., a manufacturer of optical fiber and cables, advanced 6.5 percent to 36.22 yuan, while Jiangsu Yongding Co., a cable maker, surged 8.4 percent to 14.42 yuan.
ZTE Corp, China’s second-biggest phone-equipment maker, added 2.9 percent to 42.30 yuan. The company said full-year profit rose 52 percent to 2.34 billion yuan last year as it won more orders to build networks in the world’s largest communications market.
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