Huawei’s Stealth Phone Launch Energizes Chinese Chip Stocks

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Chinese technology shares surged Wednesday after Huawei Technologies Co. surprised investors by debuting a 6,999 yuan ($960) smartphone, buoying hopes for advances in domestic chip and mobile technology despite US sanctions.

The Mate 60 Pro device, which appeared this week for sale online with little warning, generated buzz among Chinese users who saw in the gadget Huawei’s resurgence in the high-end market. Many users posted messages describing its fast wireless performance, triggering speculation Huawei had managed to achieve 5G-capabilities despite being barred from top-of-the-line chipmaking and technology.

Huawei is one of several Chinese companies at the center of Washington-Beijing tensions, the target of sanctions on the sale of American software and circuitry over allegations it aids China’s military.The leading association of global chip companies warned this year that Huawei is building a collection of semiconductor-fabrication facilities across China, a shadow manufacturing network that would let the blacklisted company skirt US sanctions and further the nation’s technology ambitions.

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