ZTE halted from trade af­ter re­port of US ex­port curbs

The Pak Banker - - COMPANIES/BOSS -

ZTE Corp. shares were halted from trade on the Hong Kong stock ex­change Mon­day af­ter Reuters re­ported that the U.S. was close to slap­ping ex­port re­stric­tions on China's se­cond-largest ven­dor of net­work­ing and telecom­mu­ni­ca­tions gear.

The Depart­ment of Com­merce in­tends to im­pose curbs on ZTE start­ing Tues­day for al­legedly vi­o­lat­ing sanc­tions on Iran, Reuters said, cit­ing doc­u­ments it ob­tained as well as an uniden­ti­fied se­nior of­fi­cial. Sup­pli­ers to the com­pany will then have to ap­ply for li­censes that will gen­er­ally be de­nied, Reuters re­ported, mak­ing it dif­fi­cult for the Chi­nese com­pany to buy Amer­i­can­made equip­ment and parts.

"ZTE has been work­ing with rel­e­vant U.S. govern­ment de­part­ments on in­ves­ti­ga­tions, main­tain­ing con­stant com­mu­ni­ca­tion with rel­e­vant de­part­ments and is com­mit­ted to fully ad­dress and re­solve any con­cerns," Lu­nitta Lu, a spokes­woman for the com­pany, said in an e-mailed state­ment. "ZTE strives to en­sure all op­er­a­tional ac­tiv­i­ties ad­here to in­ter­na­tional trade prac­tices and the laws and reg­u­la­tions of host coun­tries." The stock closed 3.5 per­cent higher at HK$14.16 on Fri­day, and are down al­most 20 per­cent since the start of 2016 in a weak Hong Kong mar­ket. No rea­son was given in the trad­ing halt Mon­day morn­ing.

ZTE, one of the world's largest net­work­ing gear ven­dors and a maker of smart­phones, has en­coun­tered is­sues with the U.S. govern­ment in the past, in­clud­ing black­list­ing over ac­cu­sa­tions of aid­ing espionage. The com­pany de­nied the al­le­ga­tions.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.