Coolpad Slumps After Report of Phone Backdoor Security Risk
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Coolpad Group Ltd. fell the most in more than three years in Hong Kong trading after a report by Palo Alto Networks Inc. said China’s fourth-largest smartphone vendor installed software providing a backdoor to its devices.
The stock declined 15 percent to HK$1.40 at the close of trade, the biggest decline since May 2011. The software could send information such as calling history to Coolpad servers and activate applications on the phones using Google Inc.’s Android without user consent, according to a post on the Palo Alto Networks website.