ZTE Corp dived 24% after American lawmakers green-lit a bill to restore severe penalties on the Chinese telecoms gear-maker, potentially up-ending a deal struck with President Donald Trump to allow it to get back in business.
The company’s Hong Kong shares slid to their lowest since July 2016, while its Shenzhen stock fell its 10% daily limit on Tuesday. The selloff ensued after the US Senate passed legislation on Monday that would restore penalties on the company, complicating Trump’s efforts to ease sanctions on ZTE after it pays a record fine and reshuffles management. A settlement on the issue is also deemed pivotal to tense US-Chinese negotiations over trade.
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