FMR cuts stake in ZTE

Nov. 4, 2009 (China Knowledge) - U.S.-based Fidelity Management and Research LLC recently reduced its H-share holding in China's ZTE Corp<000063><0763> to 7.69% from the previous 8.01%, according to the bourse operator Hong Kong Exchanges and Clearing<0388>.

Information from the HKEx showed that FMR sold 940,000 H shares of ZTE for US$5.4 million on Oct. 30. The average share price of the transaction was US$5.74 apiece.

ZTE, a leading global provider of telecom equipment and network solutions in China, said last month that its third-quarter net profit jumped 58.2% from RMB 258.3 million a year earlier to RMB 408.65 million, thanks to Chinese carrier's continuous investment in 3G networks.

Revenue for the third quarter rose 43% from RMB 10.6 billion to RMB 15.14 billion on strong sales of 3G equipment in the domestic market, the company said in a statement.

H shares of ZTE declined 2.12% to end at HK$43.9 on Tuesday.