ZTE's Hong Kong shares fall most in 17 months after results

Reuters2021-08-30

** Shares of information and communication technology systems developer ZTE Corp fall 8.2% to HK$24.75, biggest intraday decline since March 2020

** Stock hit lowest since July 26; top decliner on the Hang Seng sub-index tracking information technology firms and the fifth biggest loser on Hang Seng Composite Index

** ZTE says net profit up 119.6% year-on-year to 4.1 bln yuan ($634 mln) and it will increase investment in chip, algorithm and network architecture to assure its technological edge while helping carriers to build 5G networks

** Co had earlier forecast its H1 profit to rise between 104.6% and 131.5% year-on-year

** Citi maintains "buy" rating on the stock and lifts PT to HK$37.70 from HK$32.03

** Shenzhen-listed shares falls 4.4% to 32.89 yuan, the lowest since July 9

** The Hong Kong Hang Seng sub-index tracking information technology firms eases 0.1% while the Hang Seng Composite Index gains 0.4%

** The Hang Seng China Enterprises Index climbs 0.1% and the benchmark index is up 0.3%

** As of last close, the Hong Kong-listed stock had surged 38.2% this year

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