ZTE shares bounce back ahead of Trump meeting with Republican senators
The Chinese telecoms gear maker, which was on the brink of collapse after the US ban on buying American components, has paid US$1 billion in civil penalties as part of a settlement for violating export controls
Shares of ZTE Corp rose 20 per cent on Wednesday to close at HK$11.82 in Hong Kong, clawing back most of Tuesday’s 25 per cent loss in trading, as US President Donald Trump prepares to pressure lawmakers to stick with a White House-brokered deal to save the Chinese telecommunications equipment maker.
Despite chalking up its first gain since resuming trade, Shenzhen-based ZTE has lost about half its market cap and remains not far off a two-year low.
US President Donald Trump was expected to pressure Republican senators at a White House meeting later on Wednesday to save ZTE, urging lawmakers to soften a defence policy bill provision that would restore economic sanctions on the Chinese company.
The Senate’s 85-10 vote to pass the defence measure on Monday prompted a 25 per cent slide in ZTE’s share on the Hong Kong stock exchange.
That version of the National Defense Authorization Act passed by the US Senate will need to be reconciled with the version of that bill already passed by the US House of Representatives, a point re-emphasised by ZTE in a regulatory filing on Wednesday.