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China fund managers slash valuation of ZTE Corp after US sanction

Around 40 Chinese mutual funds have adjusted the valuation of ZTE in their portfolios since it suspended trading

Reuters  |  Shanghai 

Chinese funds have slashed valuations of ZTE Corp after the United States banned American companies from selling components to the telecoms equipment maker for seven years, a move ZTE said threatened its very survival. The US action last week was sparked by ZTE's violation of an agreement reached after it was caught illegally shipping US goods to Iran. American companies are estimated to provide 25-30 percent of the components used in ZTE's equipment. Chinese mutual fund managers cut the value of the stock in their portfolios by 20-30 per cent in a spate of announcements ...

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First Published: Mon, April 23 2018. 21:16 IST