ZTE's shares sink on stock exchanges globally

Shares are expected to fall further after Chinese kit-maker agrees to pay $1.4 billion fine
Shares of the world's fourth largest mobile manufacturer, ZTE, have slumped on stock exchanges globally.
Shares of the world's fourth largest mobile manufacturer, ZTE, have slumped on stock exchanges globally.

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ZTE's share slumped on both the Hong Kong and Shenzhen Stock Exchange's and are expected to fall further in the coming days. ZTE shares on the Hong Kong Stock Exchange sagged 39% following the news that the Chinese kit maker will pay a $1.4 billion fine to the US.

In Shenzhen, the company's stock fell by 10% (the maximum permitted daily devaluation) to 28.18 Yuan ($4.39). Analysts expect further drops in ZTE's mainland share price in the coming days.

The market's reaction to news of the fine suggests that it will be a long road to recovery for the smartphone manufacturer. After being suspended for nearly two months, the company's share price fell to HK$15.66 ($1.99) per share on the Hong Kong Stock Exchange.

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