Tencent Holdings Ltd., China’s biggest Internet company, led technology stocks higher in Hong Kong trading after the central government announced plans to boost the telecommunications industry.
Tencent climbed 3.7 percent to HK$321.40 as of the market close, the highest since the stock began trading in 2004. Comba Telecom Systems Holdings Ltd. advanced 7.5 percent and China Fiber Optic Network System Group Ltd. rose 13 percent.
Private investment in telecommunications will be encouraged and upgrades to Internet and communications infrastructure will be accelerated, according to a July 12 statement on the central government website. The plan includes pushing forward the connection of homes to fiber, enhancing third-generation wireless networks and issuing 4G licenses by the end of this year, Ting Lu, an economist at Bank of America Merrill Lynch, wrote in a note today.
“Investors are optimistic on Internet stocks,” said Kevin Tam, an analyst at Core Pacific-Yamaichi International in Hong Kong. “They have a more secure economic outlook amid uncertain macroeconomic elements in China.”
Tencent has gained 29 percent this year and is the best performer in the city’s Hang Seng index this year. The benchmark has fallen 6 percent in 2013.