Chinese surveillance camera makers Hikvision, Dahua fall on security concerns in Australia

Investors on Wednesday dumped shares of the world’s top two security camera makers – Hangzhou Hikvision Digital Technology and Dahua Technology – after Australia’s ABC News reported that these companies’ devices were being used for spying in the country.

Hikvision, listed on the Shenzhen Stock Exchange and controlled by the Chinese government, saw the biggest daily decline this year to close 8.9 per cent down to 26.7 yuan (US$3.9) on Wednesday. Dahua, also headquartered in the eastern Chinese city of Hangzhou and listed in Shenzhen, fell 10 per cent to close at 14 yuan.

The two companies supply most of the surveillance cameras installed in Australia, including at homes, on street corners, in local council offices, at schools and universities, on buses, in shopping centres and thousands of public spaces across the country, according to the report.

It cited Fergus Hanson, head of the International Cyber Policy Centre at the Australian Strategic Policy Institute, who said “having these sorts of cameras in secure facilities just doesn’t make any sense”.

Hikvision and Dahua said they were no different from video surveillance suppliers from other countries, according to the report.

The negative media coverage on the two companies point to a growing wariness against Chinese technology suppliers in Australia. Citing national security concerns, the country last month prohibited telecommunications equipment manufacturers Huawei Technologies and ZTE Corp from taking part in domestic carriers’ planned roll-out of advanced 5G mobile networks.