Shares in ZTE resumed trading on the Shenzhen and Hong Kong stock exchanges yesterday after a two-month hiatus following the US’s decision to ban the company from using American suppliers.
Investors wiped off $3 billion from ZTE’s market value during the day, with share prices dropping 41.5% in Hong Kong on Wednesday. In Shenzhen, the company hit the 10% limit for one-day losses.
Since the ban in April, ZTE may have lost over $2 billion in revenue, according to the Financial Times. However, investors’ reaction yesterday show that the damage could be much longer term, especially if contractors decide to change their supply chains.