File photo: VCG

 
Buyers of Honor's assets, formerly a sub-brand of Huawei, saw their share prices jump on Tuesday morning, with China Telling Company up 3 percent as of 11:30. 

Previously reported buyers that were missing from the buyer list on Tuesday morning saw shares plunge on Tuesday, including shares of Digital China Group. By Tuesday morning, the price of TCL also dropped more than 5 percent.

On Tuesday, Chinese tech giant Huawei Technologies sold its Honor phone brand - aimed at the lower end of the market - to a Chinese consortium of over 30 agents and dealers, a joint decision made by Honor's supply chain to ensure its survival amid escalating US sanctions. 

Rumors of the deal had been circulating for days. Selling off the company's budget mobile phone line is considered a major decision by Huawei, which is the second-largest smartphone vendor worldwide, to raise cash to buffer the impact of the US' crackdown. 

Xiaomi, another domestic brand and a strong competitor of Honor in recent years, saw its shares drop by more than 5 percent on Tuesday morning following Huawei's statement.

Profits in the lower-end smartphone market are relatively small, and Honor recorded total revenues of about 90 billion yuan（$13.67 billion） in 2019. Honor brand revenues accounted for between 15 and 17 percent of the total revenue of Huawei's consumer business segment, and about 8 to 9 percent of the company's total revenue. 

The brand's major competitors in the budget phone market, including Xiaomi, have been growing steadily since Huawei was cut off from the US chip supply. In the third quarter of this year, Xiaomi's smart phone shipments climbed to the third globally, trailing Samsung and Huawei.