Investors are getting anxious regarding Chinese tech stocks following the announcement of a US ban on ZTE and slowing smartphone sales, with big firms such as Lenovo faring poorly on the markets, Bloomberg reports.
The MSCI China technology index was down 0.8% yesterday afternoon local time. Lenovo fell 1.1% – it’s lowest in 9 years, and recent high-flier Sunny Optical Technology Group ended down 6.7%.
For ZTE, which is now subject to a seven-year ban on business with US companies, shares have been suspended from trading.
Following a somewhat gloomy outlook from Apple’s main supplier of semiconductors, Taiwan Semiconductor Manufacturing Co., markets are also losing confidence in Chinese hardware makers. Luxshare Precision Industry Co. and Han’s Laser Technology Industry Group Co. fell over 6.8% on the Shenzhen bourse.