ZTE Corp. (000063), China’s second-biggest maker of telecommunications equipment, tumbled to the lowest level since March 2009 in Hong Kong and Shenzhen trading.
China is said to plan retaliation if the European Union investigates government subsidies to ZTE and Huawei Technologies Co., the Financial Times reported yesterday, citing a person briefed on the meeting. Both companies have denied receiving any improper subsidies, the FT reported.
“ZTE has sales exposure in the EU,” Leping Huang, analyst at Nomura International Hong Kong Ltd., said in a telephone interview. “All major stakeholders including Ericsson and Nokia don’t want the EU to go through with this. No one benefits.”
ZTE slid for a second day, losing 5.9 percent to 13 yuan at 11:18 a.m. local time in Shenzhen, while the Hong Kong-traded shares fell 7.2 percent to HK$13.12.
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