ZTE shares take a beating – down by 41.5pcBusiness | 13 Jun 2018 4:28 pm
ZTE (0763) shares took a hammering in Hong Kong today after the stock resumed trading.
The embattled Chinese telco plunged by 41.56 percent at the close in Hong Kong at HK$14.96.
The state-owned company was fined US$1.4 billion by the United States Commerce Department following a ban.
At mid day, ZTE shares plunged by 39.53 percent at HK$15.48.
The state-controlled company, a repeat offender, was forced to pay US$1 billion fine by the US as a part of a settlement early this month and also ordered to put US$400 million in an escrow account. ZTE agreed to accept a compliance team chosen by the US authorities.
All executives above vice president grade are to be sacked within 30 days of the June 8 announcement.
Accused of "egregious violations' 'and lying to US authorities, the Chinese company was earlier fined US$892 million. This was imposed in April for breaching American sanctions and selling equipment to North Korea and Iran. Trading in its shares was suspended following the penalty.
But the company's troubles are not yet over. Leaders of the US Senate agreed on Monday to try to revoke the latest deal with a provision to a must-pass defense package. The lawmakers
propose to add a provision to the National Defense Authorization Act prohibiting American suppliers from selling to the Chinese telco.-The Standard