Chinese telecommunications vendor ZTE has seen its shares rocket on the Hong Kong Stock Exchange as trade tensions between Beijing and Washington show signs of easing.
The two global economic superpowers have been entrenched in a trade standoff for months now, and at times it has looked like it might become ugly, with the rest of the world looking on anxiously.
US President Donald Trump has said he will place tariffs on Apple if they don’t move their manufacturing back to the United States and out of China. Apple responded by saying that if it was hit with high tariffs then that would cause the iPhone to retail at a much higher price.
However, one company that suffered the most during the trade negotiations between China and the US was undoubtedly ZTE.
The US Department of Commerce banned US companies from trading with ZTE and pushed the telecommunications behemoth close to the brink of bankruptcy. Trump intervened and hit them with a number of sanctions and a $1bn fine, which allowed them to resume trade with the United States.
ZTE has enjoyed a strong recovery as it attempts to get back on track after its issues with the US, and this was reiterated further by its surge in the stock market. ZTE Corp surged by as much as 11 percent in Hong Kong to the highest intraday price since July 18.