US-China tech war: shares of surveillance camera maker Hikvision plunge on second day after report of harsh sanctions

Investors rushed to dump shares of Hikvision after it was reported that the Chinese firm may be added to the Specially Designated Nationals list

The new US sanctions, if imposed, would bar Hikvision from dealing with American companies or citizens, dealing a blow to its US business

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A Chinese flag hangs near a Hikvision security camera outside of a shop in Beijing. Shares of the Chinese surveillance camera maker plunged again on Friday after a report that the US is considering fresh sanctions. Photo: AP Photo

Published: 5:00pm, 6 May 2022

Chinese state-backed surveillance camera manufacturer Hikvision saw its stock price in Shenzhen tumble for the second straight day on Friday, following a report that the US is considering new sanctions against the company over alleged involvement in human rights abuses in Xinjiang.

Investors rushed to dump shares of the Hangzhou-based company, after the Financial Times reported that the firm may be added to the Specially Designated Nationals (SDN) list.

Hikvision has been on a US trade blacklist since October 2019, which requires US companies to obtain a licence before selling to the Chinese firm. But landing on the SDN list would deal a harsher blow to Hikvision by barring it from dealing with American companies or citizens at all, effectively killing its US business.

Washington has neither confirmed nor denied the FT report.

Hikvision shares fell by 9 per cent on Friday, after dropping by the daily limit of 10 per cent on Thursday.

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