16 Sep 2009 11:43

Optical communication sector in China a hot area for investment - analyst

Shanghai. September 16. INTERFAX-CHINA - China's optical communication sector will be ripe for investment after the completion of 3G network deployment, and will be further bolstered by a new government policy, an industry analyst told Interfax on Sept. 16.

The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) jointly issued a policy on Sept. 3, under which it will encourage capital investment in a number of key fields, including optical communication. In the telecommunications field, a number of other 3G TD-SCDMA-related sectors were also earmarked.

"The Chinese government's policy will encourage investment to flow into the optical communication field in order to support the industrialization of high-speed and long-distance intelligent optical communication technologies and the development of optical communication equipment," Liang Kai, an industry analyst with Huatai securities, said.

According to Liang, China's optical communication sector will attract a wave of investment trailing the country's 3G network rollout as a result of the policy, which will benefit industry leaders like ZTE Corp., FiberHome Telecommunication Technologies Co. Ltd., Jiangsu Hengtong Photoelectric Stock Co. Ltd. and CETC Information Technology System Co. Ltd.

Other key fields to be encouraged under the policy include integrated circuit (IC) design and chip manufacturing, advanced-generation TFT-LCD (thin-film transistor liquid crystal display), PDP (plasma display panel) and OLED (organic light emitting display), digital TV technologies and products, high-performance computer and next-generation Internet technologies, 3C (computer, communication and consumer electronics) products, RFID (radio frequency identification) technologies and products, and software development.