Investors wipe $3 billion off China's ZTE market value after U.S. settlement

National Security Concerns Arise Over U.S. Deal With ZTE

National Security Concerns Arise Over U.S. Deal With ZTE

Senators in support of the original deal also think that it is unrealistic for US officials to police ZTE's future actions, as the Chinese company could still conduct improper business even under a watchful eye. It would also ban US government agencies from purchasing any devices or services from ZTE or Huawei, another major Chinese telecom firm, or using government loans to subsidize any subsidiaries or affiliates of the two companies. On Wednesday in Hong Kong, they nosedived 40% to their lowest level in more than a year.

U.S. President Donald Trump's Republican allies in Congress are moving to block his deal to put Chinese telecom giant ZTE back in business if it pays $1 billion more in fines for violating U.S. sanctions against Iran. It also required ZTE to change its board of directors and executive team within 30 days.

The benchmark Shanghai Composite Index gave up 0.97 per cent, or 30.00 points, to 3,049.80 and the Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 1.58 per cent, or 27.73 points, to 1,731.43.

Dealing in the firm was suspended in April after U.S. authorities banned American businesses from trading with ZTE for 7 years due to alleged violations of the trade sanctions against Pyongyang and Tehran by the staff, which the Chinese corporation didn't punish.

The U.S. Commerce Department can exercise discretion in granting exceptions. Senator John Cornyn (R-TX) said, "China is using its telecommunications companies as means to conduct espionage. The new governance structure will pose challenges for the company's management in the future", Zhongtai Securities said in a note.

More news: G7 agrees measures to respond to hostile Russian activity despite splits
More news: Thiem and Nadal win in straight sets to reach French Open final
More news: At the Trump-Kim Summit, Human Rights Are on the Agenda

Hong Kong's benchmark Hang Seng index.HSI was down 0.5% in early trade.

ZTE also said in filings on Tuesday that it would work to resume operations as soon as possible after the ban gets lifted, and would republish its first-quarter financial results after assessing the impact of the ban and the settlement agreement.

ZTE, with a market value of about $20-billion before its shares were suspended in April, is the world's No. 4 telecom equipment maker after Huawei Technologies, Ericsson and Nokia.

A bipartisan group of USA senators has put a renewed ban on both ZTE and Huawei into an amendment to the 2019 National Defense Authorization Act.

Recommended News

  • Saudis, Russia to Talk Output Boost Ahead of OPEC Summit

    Saudis, Russia to Talk Output Boost Ahead of OPEC Summit

    US production rose to 10.9 million barrels a day in the week, but Kilduff said the market appeared able to absorb the increase. Schumer spoke as he stood in front of the price sign - regular for $3.09 - at an Exxon station on Capitol Hill.
    Colorado wildfire doubles in size, thousands evacuated

    Colorado wildfire doubles in size, thousands evacuated

    The so-called 416 Fire in southwest Colorado had burned almost 17,000 acres by Sunday morning, an area larger than Manhattan. On Friday night, Fremont County Sheriff's Office said the fire had grown to more than 30 acres and was headed northeast.
    Trudeau’s criticism will cost Canada ‘a lot of money’

    Trudeau’s criticism will cost Canada ‘a lot of money’

    Canada's loss has been Mexico's gain, as production there has soared thanks to Nafta and other trade deals. I mean we're the architects of this rules-based, worldwide order on trade and security.
  • Neymar honoured to go level with Romario on 55 Brazil goals

    Neymar honoured to go level with Romario on 55 Brazil goals

    Brazil are certainly one of the top contenders for the title with a team filled with pace and quality. Tite's side go into the tournament off the back of warm-up wins over Croatia and Austria .
    E3 2018: Microsoft Announces ‘Tales of Vesperia Definitive Edition’ For Xbox One

    E3 2018: Microsoft Announces ‘Tales of Vesperia Definitive Edition’ For Xbox One

    Disclaimer/disclosure: Product prices and availability are accurate as of the date/time indicated and are subject to change. This doesn't affect the price you pay for your product - but it does help support Everybody Plays and our team!
    Federal Judge Approves AT&T Time Warner Merger

    Federal Judge Approves AT&T Time Warner Merger

    The Justice Department argued that the merger between AT&T and Time Warner would introduce unfair advantages in the marketplace. Some see the decision to challenge the merger as political, something the Justice Department has fiercely denied.
  • Farrah Abraham Makes Fashionable Exit out of Jail

    Farrah Abraham Makes Fashionable Exit out of Jail

    She was booked at the Beverly Hills Jail and is being held on $500 bail. "Entrepreneur's workin even at the pool". Elisabeth Albanese told us that police responded to a disturbance call from the Beverly Hills Hotel .
    Ivanka Trump, Jared Kushner made $82 million in 2017

    Ivanka Trump, Jared Kushner made $82 million in 2017

    Trump has come under scrutiny from ethics watchdogs who have accused the president of using his office to promote his properties. Kushner reported divesting more than 125 assets, and listed several others as being in process of divestment.
    Democratic primaries take spotlight in House races in Va.

    Democratic primaries take spotlight in House races in Va.

    To find out how to register to vote or to check your registration status, visit the Virginia Department of Elections website . He is a conservative who backs President Donald Trump and his campaign website says he wants to "Make America BELIEVE Again".
  • NCAA tweaks redshirt rules, allows players to preserve eligibility

    NCAA tweaks redshirt rules, allows players to preserve eligibility

    Starting this fall college football players will now be able to take part in up to four games and still keep their redshirt. The Division I council adopted a proposal that prevent schools from blocking transfer requests from student-athletes.
    E3 2018: Cyberpunk 2077 Pre-Order Guide

    E3 2018: Cyberpunk 2077 Pre-Order Guide

    CD Projekt says that there will be "dozens of hours" in the main storyline and there will be plenty of side quests to partake in. While the viewpoint is in the first person for shooting and moving around, driving can be done in first or third person.
    Firmino tees one up as Brazil beat Austria

    Firmino tees one up as Brazil beat Austria

    Tite said his team "can get a bit more effective but still have a week left to work on that". He stayed on for nearly the entire game, being replaced in the 84th by Douglas Costa .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.