ZTE’s supercharged 5G rally may take a backseat before it gears up

ZTE Corp. went from one-foot-in-the-grave to 2019’s technology superstar. Despite a gain of more than 60 per cent that’s pushed its shares well above analysts’ projections, some investors argue that rally still has legs.

ZTE’s embarked on a remarkable comeback. The smaller rival to closely held Huawei Technologies Co. became one of the 10 best performers on the MSCI China Index this year after soaring roughly a third over the past week, propelled by growing optimism over its role in next-generation wireless as well as seeming progress in U.S.-Chinese trade talks. That’s a far cry from 2018 when Washington’s ban on American technology exports briefly brought the company to its knees.