Investors Bet China’s Telecom Majors Have a Lot to Gain From Digitalization Plan

Shares of China Unicom, China Telecom and China Mobile jumped by 12.9%, 9.2% and 4.6% in the three days after the government announced its digitalization plan late Monday.

China’s three state-run telecom operators saw their stock prices pop over the past three days as investors bet the companies stand to benefit from the government’s new plan to digitize the economy, analysts said.

The Shanghai-listed shares of China United Network Communications Ltd. (China Unicom), China Telecom Corp. Ltd. and China Mobile Ltd. surged by 12.9%, 9.2% and 4.6% in the three days after the plan was announced late Monday.

The plan, published by the Communist Party of China’s Central Committee and the State Council, set a 2035 target for the county to be at the forefront of global digital transformation efforts in the economic, cultural and social spheres.