ZTE's stock price trend
ZTE Day K Line Chart
Tencent Technology News, on August 27, the 5G concept broke out across the board, leading the Shanghai and Shenzhen concept sectors, ZTE rose 7.35%.
In the news, according to a report by Reuters on Friday, US Commerce Secretary Wilbur Ross selected former US prosecutor Roscoe Howard as the supervisor of ZTE Corporation. Reuters quoted sources as saying that the initial candidate for this position was Peter Lichtenbaum, former assistant secretary of the Ministry of Commerce, but Ross learned that Lichtenbaum was the co-author of the August 2016 Donald Trump who was ineligible to serve as president. After that, the decision was withdrawn.
One of the conditions for the US Department of Commerce and ZTE to reach an agreement on June 7 this year is that the United States formed a team of compliance officers to supervise the company for 10 years and was funded by ZTE.
ZTE has been ordered by the US Department of Commerce to block the supply of core components this year, and was fined nearly 10 billion. The incident has had a very serious impact on the company. First of all, reflected in the company's stock price, the market value has shrunk by about three-quarters. The stock price fell to 11.85 yuan on July 11, which is the lowest price in more than five years. In addition, according to the company's updated quarterly report, the company's operating income in the first quarter was 27.53 billion yuan, a year-on-year increase of 6.92%; the results recorded a profit of 1.14 billion yuan from the same period last year, turning into a loss of 5.407 billion yuan.
ZTE closed at US$18.40 today, with a growth rate of 7.35% and a market capitalization of 63.24 billion yuan. It is worth mentioning that the stock has rebounded by 55% compared to the five-year minimum price set on July 11.