ZTE shares edge up after $10.7 billion credit proposal
Reuters
Published Jun 14, 2018 04:36
ZTE shares edge up after $10.7 billion credit proposal
HONG KONG (Reuters) - Shares of Chinese telecommunications giant ZTE Corp (HK:0763) rose as much as 3.7 percent in Hong Kong on Thursday, after the firm proposed a $10.7 billion (8 billion pounds) financing plan and the nomination of eight new board members.
China's No.2 telecom equipment maker, which just agreed to a $1.4 billion settlement with the U.S. government to be pardoned from a supplier ban, saw its Hong Kong-listed shares rise to HK$15.52 in morning trade, outperforming the benchmark Hang Seng Index that dipped slightly.
But ZTE's Shenzhen-listed shares dropped by the maximum daily allowed limit of 10 percent on mainland exchanges.
A day earlier, ZTE's Hong Kong-listed shares had plunged 41 percent, their biggest decline in history, as the stock resumed trading after being suspended for almost two-months due to the U.S. ban that threatened to put it out of business.
In filings late on Wednesday, ZTE proposed to nominate 8 board members, to be voted at an AGM on June 29.
It also proposed to allow the board to apply for $10.7 billion credit line, including a 30 billion yuan credit line from Bank of China and $6 billion credit line from China Development Bank.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.