New York, May 15: Shares of American companies that supply chips and other components to Chinese telecom equipment maker ZTE Corp rebounded strongly on Monday after US President Donald Trump said that Washington and Beijing are working to get the company back into the business.
Shares of Acacia Communications Inc., a Massachusetts-based optical interconnect components maker selling about 30 per cent of its products to ZTE in 2017, spiked 8.73 per cent to $34.25 apiece following Trump's remarks. reports Xinhua.
Shares of Oclaro, a US-based company that made 18 per cent of its revenue from ZTE in the fiscal year that ended July 1, 2017, surged 2.92 per cent to $8.82 apiece.
Shares of Lumentum, another US firm that also does substantial sales to ZTE, jumped 2.22 per cent to $64.50 apiece. All those stocks have suffered big losses since the US imposed a denial of export privileges against ZTE on April 16.
The two sides "are working together to give massive Chinese phone company, ZTE, a way to get back into the business, fast," Trump said on Sunday in a tweet. The President added that he has instructed the US Commerce Department "to get it done."
China appreciates the US position on ZTE, Foreign Ministry spokesperson Lu Kang was quoted as saying. He added that China is keeping close communication with the US on specific details and issues that the US side is concerned about.