Trump takes on another high-flying Chinese tech stock in IFlytek

  • Markets
  • Thursday, 23 May 2019

BEIJING: Traders will be watching how shares of Iflytek Co. react at the open in Shenzhen following news the voice recognition company may also face restrictions from the U.S.

The U.S. is considering curbs on Iflytek, as well as Shenzhen-listed Xiamen Meiya Pico Information Co. and Beijing Megvii Co., which is unlisted, people familiar with the matter said. 

The names of two other potentially blacklisted companies -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- were revealed Wednesday and their share prices plunged more than 9% intraday.

Anhui-based Iflytek has a market cap of 65.81 billion yuan ($9.53 billion) and a 0.5% weighting on the Shenzhen Composite Index. 

The maker of translation devices accounts for a weighting of 5.9% in the CSI 300 Info Tech Index, while Hikvision has more than 12%. Iflytek’s shares have risen 28% this year but they’re down 20% from a March high. 

Overseas investors own 2.35% of the company via the trading link with Hong Kong, according to exchange figures as of May 22. - Bloomberg