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ZTE shares tumble as trading resumes

BBC News BBC News 7/04/2016
zte logo © Getty Images zte logo

Shares in Chinese telecom equipment maker ZTE listed in Hong Kong have fallen 11.7% after trading resumed for the first time in a month.

zte phones: ZTE is China's second-largest telecommunications company © Getty Images ZTE is China's second-largest telecommunications company

Its shares had been suspended from trading since 7 March, at the request of the company.

That was when the US announced restrictions against ZTE for alleged violations of US export controls regarding Iran.

The company has revised down its 2015 profit, citing US trade restrictions.

Tech firm ZTE said net profit for last year was 3.2bn Chinese yuan ($493.3m; £350m). In January, the company indicated its 2015 net profit was 3.8bn yuan.

ZTE said the trimmed profit figure was due to a "reassessment" of future cash inflows, arising from related contracts following US export restrictions.

The company has announced to shareholders that it is currently co-operating with the US Commerce Department, the US Department of Justice, the US Department of Treasury and other relevant US government departments, in their respective investigations of ZTE's compliance with the US Export Administration Regulations.

ZTE is the second-biggest supplier of telecommunications equipment in China, after Huawei.

Based in Shenzhen, ZTE is known for its smartphones, but the company also makes semiconductors and other products.

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