ZTE shares plummet as trading resumes

Management revamp, stiff penalties to avoid US sanctions dampen investor sentiment

Shares of ZTE Corp plummeted on Wednesday, after the Chinese telecommunication equipment maker said it will have to pay at least $1 billion in penalties and reshuffle its management in exchange for the United States government's decision to lift a crucial ban.

The Hong Kong-listed shares of ZTE fell more than 41 percent to HK$14.96 ($1.91) on Wednesday, the lowest in a year, as it resumed trading after a two-month suspension. Its stock in Shenzhen also slid by the daily maximum of 10 percent.