China’s decision to finally issue 3G licenses in the world’s largest mobile market did wonders for Hong Kong’s Heng Seng Index in trading today. China Mobile, the globe’s biggest wireless provider, was the most heavily traded stock of the morning rising HK$2.40 to HK$80.20 (HK$7.80 is equivalent to US$1). Other Chinese telecommunications providers China Unicom and China Telecom had an 5.2 percent and 5.9 percent increase in share prices respectively.
At the time of this writing the Heng Seng Index was up 2.5 percent while the country’s local index, China Enterprises Index, was up 2.8 percent.
Reuters reports that the 3G licenses will result in $41 billion in telecommunications equipment spending in China. Most of that will probably be in 2009 as the Chinese Ministry of Industry of Information will probably begin issuing licenses early in the year.
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