The top performers in a rally staged by Hong Kong-listed Chinese stocks overnight were infrastructure companies led by a 7% gain in China Tower Corp, which does telecom infrastructure.

China Railway, China Gas, China Communications Construction are also big winners, along with property companies.

H-shares
Source: Bloomberg

The message is unambiguous: China will put national resources behind its 5G rollout and backstop Huawei against US pressure.

Huawei – the Chinese national champion which has lept out in front of competition in 5G technology – is facing opposition from the US government, which has urged allies not to use the firm for mobile networks due to national security concerns.

Tensions have come to the fore in recent weeks following the arrest in Canada of Huawei chief financial officer Meng Wanzhou at the behest of US law enforcement authorities on charges related to Iran sanctions violations.