ZTE’s Now Lost $7 Billion of Value as Lawmakers Fight Trump Deal
- Stock dives 27% in Hong Kong and 10% limit in Shenzhen Tuesday
- Lawmakers are trying to reverse a deal struck with Trump
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ZTE Corp. dived 27 percent after American lawmakers passed a bill to restore severe penalties on China’s second-largest telecoms gear-maker, potentially up-ending a deal struck with President Donald Trump to allow it to get back in business.
The company has lost $7.2 billion of market capitalization in the past week, as its Hong Kong shares slid to their lowest in a year Tuesday and the Shenzhen stock plunged the 10-percent daily limit for the fourth straight day. ZTE has struggled to end a seven-year ban on American technology purchases that has crippled its business.