Voice recognition company Iflytek plunged following news it is on a list of Chinese technology firms that may face restrictions from the US.
Iflytek slid as much as 8.2% in Shenzhen after people familiar with the matter said the US is considering curbs on the company, as well as Shenzhen-listed Xiamen Meiya Pico Information and Beijing Megvii, which is unlisted. Data firm Xiamen Meiya dropped as much as 8.4%.
The Trump administration is broadening its attack on companies linked to China’s vast surveillance network, after initially tackling Huawei Technologies. Two security camera giants — Hangzhou Hikvision Digital Technology and Zhejiang Dahua Technology — were brought into the scope on Wednesday, sending their share prices down more than 9% during the day. They both extended declines Thursday.
Anhui-based Iflytek has a market value of 65.8-billion yuan (US$9.5-billion) and a 0.5% weighting on the Shenzhen Composite Index. Its shares are down 24% from a March high, though they are still firmly up this year. Overseas investors own 2.35% of the company via the trading link with Hong Kong, according to exchange figures as of 22 May. China Mobile is the top shareholder with a 12.85% stake. — Reported with assistance from Ken Wang, (c) 2019 Bloomberg LP