China ZTE Halts Share Trade On Report It Will Win 3G Contract

SHANGHAI -(Dow Jones)- ZTE's A shares were suspended from trading Friday, after newspaper reports that the company would be granted a large third-generation contract by China Mobile Communications, a notice on the Shenzhen Stock Exchange's Web site said.

The state-run Shanghai Securities News said China Mobile will likely award ZTE, a telecommunications equipment provider, about half of CNY26.7 billion worth of contracts to build its third-generation network. Hong Kong's South China Morning Post also reported that ZTE would win bulk of China Mobile's 3G contracts.

Friday's notice said trading in ZTE's shares will resume after the company publishes a statement, but it didn't give any further information.

Shenzhen-listed ZTE Corp. closed down 1.6% at CNY47.15 Thursday.

-Sun Yan contributed to this story; Dow Jones Newswires; 8621 6120-1200; yan.sun@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 6th April 2007