The U.S. government was trying to persuade allied countries to avoid telecommunications equipment from Huawei, which is accused of spying for the Chinese government, allegations the company has repeatedly denied. Huawei-related stocks therefore plunged significantly. However, a senior official of Britain’s National Cyber Security Centre (NCSC) recently said that Britain was able to manage the security risks of using Huawei telecoms equipment and had not seen any evidence of malicious activity by the company. U.S. President Donald Trump also said the possibility of dropping criminal charges against Huawei would be discussed with U.S. attorneys and with Attorney General in coming weeks. Furthermore, Huawei has internally set a goal of shipping 250 million smartphones in 2019 and 300 million smartphones in 2020, representing a CAGR growth of over 20%. Huawei-related stocks are anticipated to gain drivers for a rerate which may present investment opportunities for investors.

Bloomberg, Huawei

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