ZTE shares jump after US ban lifted

17 Jul 2018

Chinese telecoms equipment maker ZTE saw its shares rise more than 16% on the Hong Kong stock market on Monday, after Friday’s lifting of a banning order which had prevented the vendor from purchasing critical components from the US, the Financial Times reported. The Trump administration removed the restriction after ZTE placed USD400 million in escrow at a US bank, on top of the USD1 billion penalty it paid in June for breaching US sanctions on North Korea and Iran.

The FT report added that despite Monday’s gains, ZTE’s HK shares remained 37% below their value before the ban in April. Preliminary figures indicated ZTE suffered a net loss of CNY7 billion-CNY9 billion (USD1 billion-USD1.35 billion) for the first six months of 2018, compared with net profit of CNY2.29 billion in H1 2017.

China, ZTE