A series of Chinese shares fell on Thursday following the arrest of Huawei's chief financial officer, Meng Wanzhou, in Vancouver, which raised concerns about US-Chinese trade tensions.
The Hang Seng China Enterprises Index for Hong Kong-listed Chinese companies was down 2.76 percent from 12:40 pm On the mainland side, the CSI 300 index of the 300 most important stocks in Shanghai and Shenzhen fell 2.1 percent. The US stock market is closed on Wednesday to former US President George H.W. Bush.
The crash occurred after Canadian authorities arrested Meng, daughter of the founder and chief executive officer of Huawei Ren Zhengfei, . Meng is facing extradition to the US.
Huawei's main opponent, ZTE collapsed by noon in Hong Kong by nearly 6 percent. The news from Meng also hit Huawei's subcontractors owned by Asian stock market employees. Among the worst performers is the Shennan Circuit, which fell by nearly 10 percent in Shenzhen at the time.
Huawei and his main opponent ZTE were targets of the worried US government over the alleged links between the telecom equipment suppliers and the Chinese government. The US ZTE ban fears that Huawei will face a similar fate. In April, the US Department of Commerce announced a seven-year ban designed to prevent American manufacturers from selling to ZTE, which pledges in 2017 to violate sanctions against Iran and North Korea.
Chinese equities were on the downtrend ahead of Meng's arrest following rising US tarrifs in recent months. In October, the Shanghai Benchmark Index fell to a four-year low.
Updated with charts on HSCEI and ZTE.