ZTE Corp controlling shareholder plans 3 percent stake sale after stock rebound

HONG KONG: Chinese telecom equipment maker ZTE Corp’s controlling shareholder plans to reduce its stake by as much as 3 percent after the stock more than doubled in value since surviving a U.S. sanction last year, showed regulatory filings late on Tuesday.

The stock slumped as much as 7.6 percent in Shenzhen on Wednesday following the news. Its Hong Kong-listed shares dropped as much as 5.6 percent.

The Chinese firm was crippled early last year after breaking U.S. sanctions and was only able to resume business in July after paying $1.4 billion in penalties to lift a U.S. supplier ban. The stock has since risen around 150 percent in Shenzhen.