ZTE Shares Tumble After Report It May Pay to Resolve U.S. Allegations
By Jiahui Huang
Shares of Chinese telecom-equipment maker ZTE tumbled after a report that it may pay more than $1 billion to the U.S. government over years-old allegations of foreign bribery.
Reuters, citing two people familiar with the matter, reported on Thursday that U.S. officials are working on a resolution that could see ZTE pay a hefty fine.
Reuters added that it was unclear when a deal would be reached.
ZTE in a filing to the Hong Kong stock exchange later on Thursday said that it had noted recent media reports about an investigation into the company's compliance with the U.S. Foreign Corrupt Practices Act.
"The company is in ongoing communication with the United States Department of Justice regarding the relevant matters and will resolutely defend its rights and interests through legal means and other measures," ZTE said.
When reached by The Wall Street Journal, a ZTE spokesperson said the company had nothing to add beyond its filing with the Hong Kong stock exchange.
The U.S. Department of Justice didn't immediately respond to a request for comment.
ZTE's shares were recently down 12% in Hong Kong and 10% lower in Shenzhen, and led losses on the CSI 300 index of Chinese blue-chip stocks.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
December 11, 2025 01:18 ET (06:18 GMT)
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