ZTE shares set to open up 3.2pc after raising H1 profit forecasts

HONG KONG: Shares of Chinese telecom equipment maker ZTE Corp were set to open up 3.2 percent in Hong Kong on Tuesday after the company raised its earnings guidance for the first half of the year.

The Shenzhen-based company said after the market closed on Monday it expected first-half net profit of between 1 billion yuan ($161.1 million) and 1.15 billion, having previously forecast net profit for the period of between 800 million and 1 billion.

That was due to improving margins in its global business, as well as revenue from new contracts to build China's next-generation telecoms network.

Its shares were set to open up 3.2 percent at HK$15.52, outperforming the Hang Seng Index's 0.6 percent rise.