Shares of telecoms firm ZTE surge 8.8% in Hong Kong


AFP

HONG KONG — Shares in Chinese telecom giant ZTE jumped as much as 8.8 percent Wednesday in Hong Kong after it ended a year of uncertainty in its U.S. business following a US$1.2 billion fine. U.S. officials said Tuesday the firm would immediately pay a massive fine of $892 million for flouting U.S. sanctions by shipping to Iran and North Korea.

It would be subject to another US$300 million in penalties if it violates the terms of the settlement, in what amounts to the largest criminal penalty in U.S. history in an export control case. The U.S. had placed trade restrictions on the telecommunications equipment giant in 2016 over the violations.