Datang Telecom Technology Co Ltd, the major developer of a Chinese 3G (third-generation) mobile communications standard, is reportedly set to receive a cash injection from the Chinese government that could help the State-owned firm align its operations.

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The Guangdong-based 21st Century Business Herald yesterday reported that the State-owned Assets Supervision and Administration Commission (SASAC) will inject 4 billion yuan into Datang Telecom.

Buoyed by the news, the listed firm rose to its daily limit yesterday although the Shanghai Composite Index recorded its largest-ever daily decrease.

Tang Ru'an, general manager of Datang Telecom, yesterday declined to confirm the funding. The SASAC was unavailable for comment.

But several industry observers said the funding is "highly likely" as the government is giving strong backing to TD-SCDMA, the Chinese 3G standard to compete with foreign rivals WCDMA and CDMA 2000.

The amount of funding has yet to be finalized, but it could be a "huge" cash injection, they said.

The funding comes at a time when TD-SCDMA, which has long lagged behind its foreign rivals, is gaining increasing momentum.

"TD-SCDMA is now on a healthy track," Tang told China Daily yesterday.

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