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[$$] Lenovo, ZTE stocks tumble in wake of China ‘stealth’ chip claims

Alice Woodhouse in Hong Kong and Lucy Hornby in Beijing

Chinese hardware makers listed in Hong Kong posted sharp falls on Friday in the wake of a report claiming China implanted a tiny chip in servers compromising technology supplied to US technology giants and Washington’s intelligence services. A Bloomberg investigation published on Thursday claimed miniature chips had been inserted into US-bound servers giving the creators a “stealth doorway” into networks using the altered equipment. In Hong Kong on Friday, computer maker Lenovo fell more than 20 per cent before recovering to close down nearly 15 per cent. Telecommunications equipment maker ZTE fell as much as 14 per cent before closing down almost 11 per cent. Neither company was named in the investigation.