(JW Insights) Aug 31 -- Chinese chip stocks rallied on August 30 following Huawei Technologies' launch of its new Mate 60 Pro phone, as investors speculated it could be using a 5G capable chip which, if true, would be a win for China's local semiconductor sector, reported Reuters on August 30.

Since 2019, Washington has restricted Huawei from buying advanced chips and software from U.S. companies, which has decimated its consumer electronics business and left it only able to launch limited batches of 5G models using stockpiled chips.

But research firms told Reuters last month that they believed Huawei was plotting a return to the 5G smartphone industry by procuring chips domestically.

On August 29, the company began selling its Mate 60 Pro around midday for RMB6,999 ($960) in an unusually low-key fashion, having given no advance notice or conducted advertising.

The specifications provided for the Mate 60 advertised its ability to make satellite calls, but provided no information on the power of the chipset inside.

Still, online users who managed to purchase the phone began posting videos of themselves conducting tests that they said showed it could match the network speeds of 5G chipset phones as well as screenshots saying it used a Kirin 9000s chip.

The phones were selling fast, by the afternoon Huawei's website said buyers would only be able to receive their phones earliest on September 17.

Huawei, whose woes with Washington have become a key flashpoint in U.S.-China relations, declined to comment on whether the phone was 5G capable but said in a statement the Mate 60 series was its most powerful Mate model ever.

China's semiconductor sector jumped more than 2.5% on August 29, sending weekly gains to roughly 8%, according to the Reuters report.

(Gao J)