China’s two largest surveillance camera makers take a beating from US ban
Investors offload Hikvision and DahuaTech shares after the US bans federal government from using Chinese made surveillance equipment
Investors on Friday dumped shares of the world’s top two security camera makers – Hangzhou Hikvision Digital Technology and Zhejian Dahua Technology – after they warned that a move to ban the use of Chinese made surveillance equipment by the US federal government could have wider ramifications on their business.
The US Senate passed the 2019 National Defense Authorization Act on Wednesday, under which the US government will be banned from buying Chinese-made surveillance equipment from several Chinese firms. The US president is yet to sign the bill into law.
The bill points to growing wariness in the US against Chinese technology on national security concerns as trade tensions simmer.
Hikvision, controlled by the Chinese government, has previously supplied equipment to the US army to monitor its base in Missouri and to Memphis police, according to The Wall Street Journal. On Thursday, the company reported a 26 per cent year on year increase in net profit for the first half to 4.15 billion yuan (US$604 million).
Hangzhou-based Hikvision, listed on the Shenzhen Stock Exchange, plummeted as much as 9.4 per cent, and closed 5.9 per cent lower at 30.03 yuan, having shed 14 per cent this week.