The chinese company ZTE, sees shares collapse by 39%

Reuters

Shares in Chinese technology company ZTE plummeted by 39% in Hong Kong, as the trading in the company resumed after a two-month suspension.

In the month of April, the US Department of Commerce has found ZTE had infringed the prohibitions on trade with North Korea and Iran.

A ban was placed on the firm, which has prevented the purchase of parts from US suppliers.

The ban forced ZTE to suspend major operations, and trading in the shares was halted on the 17th of April.

Last week, WE reached an agreement with the Chinese technology giant, which removes the ban.

The agreement will involve ZTE to pay $ 1 billion in criminal and take US-has approved the membership of the team. It will also replace its board of directors.

ZTE, based in Shenzhen, China is the second largest telecommunications maker. It depends on US-made components for the production of mobile phones.

In Shenzhen, the company shares were down 10% in early trading, which is the maximum allowed on the mainland.

The share drops to Shenzhen and Hong Kong were widely expected.
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The decision to lift the US ban on ZTE has faced sharp criticism from US politicians, even some Republicans.

Senate leaders from both sides of the political fence are expected to vote on at the end of this week on an amendment to a bill that would block the agreement between the trumpet of directors and ZTE.