Giulia Marchi | Bloomberg | Getty Images
Signage can be displayed at the ZTE headquarters in Shenzhen, China, on Monday, June 4, 2018.
Chinese telecommunications giant ZTE Corp had about $3 billion wiped off its market value as of which resumed trade on Wednesday after agreeing to pay up to $1.4 billion in penalties to the U.S. government.
China’s No. 2 telecommunications equipment maker was crippled when a seven-year supplier ban was imposed on the company in April for breaking a 2017 agreement reached after of which was caught illegally trading with Iran as well as also also North Korea.
The ban, which has prevented ZTE coming from buying the U.S. components of which relies on to make smartphones as well as also also different devices, will not be lifted until ZTE pays a fine as well as also also places $400 million more in an escrow account in a U.S.-approved bank.
The Hong Kong-listed shares of ZTE slid as much as 41 percent to HK$14.98, their lowest in a year, following a two-month trading suspension, while its Shenzhen shares fell by their 10 percent limit after of which confirmed details of the agreement publicised by the U.S. government on Monday.
Hong Kong’s benchmark Hang Seng index was down 0.5 percent in early trade.
Confirming details of the deal, ZTE said late on Tuesday of which could replace its board of directors as well as also also of which of its import-export subsidiary ZTE Kangxun within 30 days of the June 8 order being signed by the United States.
All members of its leadership at or above the senior vice president level could be removed within the 30-day period, using a commitment of which they could not be re-hired, along with any executives or officers tied to the wrongdoing, of which said.
of which also said in filings on Tuesday of which of which could work to resume operations as soon as possible after the ban gets lifted, as well as also also could republish its first-quarter financial results after assessing the impact of the ban as well as also also the settlement agreement.
The case has become highly politicized as well as also also a key focus of bargaining talks as Washington as well as also also Beijing look to avert a trade war.
U.S. lawmakers have attacked Washington’s agreement with ZTE as well as also also plan legislation to roll of which back, citing intelligence warnings of which ZTE poses a national security threat.
ZTE, using a market value of around $20 billion before its shares were suspended in April, can be the planet’s fourth-largest telecom equipment maker after Huawei Technologies, Ericsson as well as also also Nokia.