Qiao Xing rips higher on China CDMA review
By Myra P. Saefong, CBS MarketWatch
Last Update: 7:02 PM ET Dec 28, 1999
GUANGDONG, China (CBS.MW) -- Shares of Qiao Xing
Universal Telephone soared 527 percent Tuesday on the
possibility that the Guangdong government in China will approve
the company's application to make CDMA cell phones.
If the government of Guangdong province in
China approves Qiao Xing's application to
begin manufacturing the phones, it would be
one of a handful of companies that the
Chinese Ministry of Information said it would
authorize to manufacture the phones. So far,
China only produces GSM cell phones.
Shares of Qiao Xing (XING: news, msgs)
closed up 42 7/8 at 51. More than 12.8
million shares changed hands, compared to
the stock's daily average volume of around
745,000. Shares of Qualcomm (QCOM:
news, msgs), which licenses CDMA
technology, were down 10 3/8 to 503.
The Ministry of Information is expected to
review the company's application with the
Economics and Trade Committee before the
year's end, Rui Lin Wu, Qiao Xing's
chairman said in a statement.
"We are optimistic about Qiao Xing's entry into China's
potentially huge CDMA cell-phone market," Wu said. "We are
hopeful that we will be selected."
When the Chinese Ministry of Information announced it would
allow between three and five Chinese companies to manufacture
CDMA cell phones in October, Qiao Xing organized a research
team. The China-based company now has the capability of
designing and producing components for the CDMA cell phones.
Qiao Xing has
been seeking out
international firms
for strategic
alliances [Zi perhaps???] amid its
possible entry into
China's untapped
CDMA cell phone
market.
As a result, it's reached an agreement with a major Asian
telecommunications company that produces and markets CDMA
phones. In a joint venture, the two companies would establish a
factory where Qiao Xing could manufacture and market the
phones, the company said.
Last month The China Daily Business Weekly reported China
Unicom is expected to announce China-wide wireless services
via a CDMA cellular network by next summer. Foreign suppliers
engaged in joint ventures with CDMA manufacturing capabilities
in China will get priority in the bidding to build the network, the
paper cited Lu Jianguo, vice-president of China Unicom, as
saying. See earlier report |
