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ZTE drops 25 per cent after US lawmakers advance effort to restore export ban

ZTE drops 25 per cent after US lawmakers advance effort to restore export ban

ZTE Corp dived on Tuesday after American lawmakers green-lit a bill to restore severe penalties on the Chinese telecoms gear-maker, potentially upending 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 level in two years, down 25 per cent to HK$9.85, while its Shenzhen stock fell by the 10 per cent daily limit.

The sell-off 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.