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ZTE stock plummets 40% after crippling US ban

CNN
ZTE stock plummets 40% after crippling US ban

Shares in ZTE plunged 40% on Wednesday as the Chinese tech company reels from a crippling US ban on the supply of crucial parts. The Hong Kong-listed stock of ZTE (ZTCOF), which makes smartphones and other telecommunications equipment, had been suspended for the past eight weeks after the US Commerce Department blocked American firms from selling parts or providing services to the company. Commerce Secretary Wilbur Ross announced a deal last week to lift the ban, which had brought ZTE's factories to a standstill. Under the agreement, the Chinese company will have to pay a fine of $1 billion, set aside another $400 million, completely overhaul its senior management and bring on board an American monitoring team.