27-02-2019

The U.S. government was trying to persuade allied countries to avoid telecommunications equipment from Huawei, which is accused of spying for the Chinese government, allegations the company has repeatedly denied. Huawei-related stocks therefore plunged significantly. However, a senior official of Britain’s National Cyber Security Centre (NCSC) recently said that Britain was able to manage the security risks of using Huawei telecoms equipment and had not seen any evidence of malicious activity by the company. U.S. President Donald Trump also said the possibility of dropping criminal charges against Huawei would be discussed with U.S. attorneys and with Attorney General in coming weeks. Furthermore, Huawei has internally set a goal of shipping 250 million smartphones in 2019 and 300 million smartphones in 2020, representing a CAGR growth of over 20%. Huawei-related stocks are anticipated to gain drivers for a rerate which may present investment opportunities for investors.

Reference:
Bloomberg, Huawei

General Disclosure and Disclaimer
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.