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China Stock Bulls Get Painful Wake-Up Call as 5G Trade Unravels

  • China Mobile’s tender results spur price-war concern
  • Optical fiber makers had rallied as traders piled into 5G
Updated on

China Mobile Ltd. just pulled the rug out from under one of the world’s hottest trades.

Buying Chinese stocks related to 5G is no longer a slam dunk. Competition to supply China’s telecom giants has become so intense that cable makers are battling a severe price war that caught investors off guard. Instead of the earnings windfall that many were hoping for, profit margins will likely be squeezed and analysts say some companies may only manage to break even this year.