Chinese stocks plummeted as Huawei CFO arrested increases trade fears – TechCrunch
A number of Chinese stocks fell harsh on Thursday after the arrest of Huawei Finance Director Meng Wanzhou in Vancouver deeper concerns about US-China trade tensions.
The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong was 2.76 per cent from kl. 12:40 On the mainland side, the CSI 300 Index for the top 300 stock market in Shanghai and Shenzhen fell 2.1 percent. The US stock market is closed Wednesday to honor former US President George H.W. Bush.
The crash arrived after Canadian officials catch Meng, daughter of Huawei's founder and CEO Ren Zhengfei, with suspicion that Huawei has violated US sanctions against Iran. Meng faces extradition to the United States.
Shares of Huawei's main rank ZTE nosedived nearly 6 percent in Hong Kong at noon. Meng's news also hit suppliers of employee-owned Huawei across the Asian stock markets. Among the worst artists is the Shennan Circuit, which slipped nearly 10 percent in Shenzhen because of this writing.
Huawei and its headrunner ZTE have been the target of the US government that cares about the alleged ties between telecom makers and the Chinese governemnt. The US ban on ZTE sparks concerns that Huawei will face a similar fate. In April, the US Department of Commerce announced a seven-year ban that would restrict US component decision makers from the seller to ZTE, who in 2017 declared guilty of violations of sanctions against Iran and North Korea.
Chinese stocks had been on a downward trend before Meng was arrested as a result of rising US tarrifs in recent months. In October, Shanghai's benchmark index fell to a four-year low.
Updated with charts on HSCEI and ZTE.
