Shares of Huawei suppliers extend losses as concerns deepen over the arrest of the CFO of Huawei Technologies Co Ltd. Meng Wanzhou, who’s also the daughter of Huawei’s founder, faces US accusations that she covered the links of her company up to a company that attempted to sell equipment to Iran a prosecutor said on Friday.
- BYD Electronic International Co Ltd and AAC Technologies Holdings both shed more than 3 percent.
- On the mainland, BOE Technology, AVIC Jonhon Optronic Technology, Luxshare Precision Industry, O-Film Tech and SF Holding Co Ltd post losses.
- Shares of Taiwan Semiconductor Manufacturing Co, MediaTek Inc and Hon Hai Precision Ltd all down about 1.
- The Shenzhen stocks of ZTE had tumbled nearly 70 percent at the same point since the US imposed an export ban which threatened to place it out of 34, before regaining some ground.
Meng Wanzhou was arrested in China on request of the United States and after this, one of the top executives of Huawei Technologies in China argued that the CFO should set out on a bail. He also added that, “She should be set out on a bail while awaiting an extradition hearing due to severe hypertension and fears for her health while incarcerated in Canada”
Echoing concerns the EU’s technology leader said due to the threat they pose to the business and safety of the bloc, the European Union ought to worry about Huawei and Chinese tech firms.
The arrest has caused an impact in shares and stocks of a lot of “Suppliers” and the one’s who’ve been in relation with Huawei have faced a serious downturn, However, their competitors have seen an increase in their stock value.
We at TheGeekHerald think that if the company has broken a law one time, it surely should have done it multiple times in the past and if given a bail, they could repeat in the future too. That’s why, it’s important for the regulators to take care of this, so that they won’t repeat the same in the future.