ZTE shares slide as it forecasts third quarter loss

Composite of Huawei and ZTE's logos A US panel has voiced its concerns over the links of ZTE and Huawei to Chinese authorities

Related Stories

Shares of Chinese telecom equipment maker ZTE have dipped after it forecast a loss of between 1.9-2bn yuan ($300m; £188m) for the third quarter.

That compares with a profit of $299m during the same period last year.

ZTE shares dipped as much as 17% to HK$10.42 on the Hong Kong Stock Exchange and 10% to 9.45 yuan on the Shenzen stock exchange.

Last week, a US panel said the firm was a security threat to the country.

It had raised concerns about the links of ZTE and another Chinese firm, Huawei, to the Chinese government, allegations that the firms have denied.

In its report, the US panel recommended that the two firms should be barred from any mergers and acquisitions in the US, and that US firms should try and avoid using equipment made by the two companies.

ZTE is also being investigated by the US authorities over its dealings with Iran amid allegations that it sold banned computer gear to Tehran.

US sanctions against Iran prohibit the trade of any non-humanitarian goods with Iran.

The firm said that its performance during the period was hurt after it curtailed its sales to Iran in wake on the sanctions.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • chocolate cake and strawberriesTrick your tongue

    Would this dessert taste different on a black plate?


  • Duke and Duchess of Cambridge and Prince George leaving New Zealand'Great ambassadors'

    How New Zealand reacted to William, Kate - and George


  • Major Power Failure ident on BBC2Going live

    Why BBC Two's launch was not all right on the night


  • Front display of radio Strange echoes

    The mysterious 'numbers stations' left over from the Cold War era


  • A letter from a Somali refugee to a Syrian child'Be a star'

    Children's uplifting letters of hope to homeless Syrians


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.