ZTE Stock Falls After US Penalties Over Iran, North Korea

BEIJING (AP) — Shares in ZTE Corp. have fallen 41.5 percent in Hong Kong after the Chinese telecoms equipment maker agreed to pay a $1 billion penalty to the U.S. government and replace its top managers.

Shares resumed trading Tuesday following a two-month suspension after Washington accused state-owned ZTE, China’s second-largest maker of telecoms equipment, of reneging on a settlement of charges it violated export rules by selling U.S. technology to Iran and North Korea.

ZTE agreed to replace its top executives and board of directors and to install a team of U.S. compliance experts in the company.

%d bloggers like this: