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Huawei was scared by a U.S. investigation but Huawei was so calm

via:博客园     time:2018/4/27 14:03:43     readed:77

After ZTE was sanctioned, the United States seems to have once again pointed its finger at Huawei, the global leader in communications equipment. On April 25, local time, the Wall Street Journal quoted sources as saying that the U.S. Department of Justice is investigating whether Huawei has violated U.S. sanctions against Iran. According to the report, if investigators determine that Huawei is intentionally violating U.S. export laws, Huawei may face additional criminal penalties to enforce corporate surveillance or prosecute individuals who may be suspected of participating in illegal activities, and other potential consequences.

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However, the report pointed out that it is not yet clear how far the Ministry of Justice investigations have progressed and what specific allegations are being explored.

Up to now, Huawei has declined to comment on the matter. Huawei stated that the company complies with all applicable laws and regulatory requirements of the countries in which it operates, including the applicable United Nations, United States, and European Union regulations and regulations on export controls and sanctions.

Although Huawei responded calmly and calmly, it still surprised Huawei's global partners. After the news, the stock prices of Huawei suppliers and partners in the US, Hong Kong and A-share markets were shaken.

Huawei Concept Shares Suffered

Previously, as the U.S. Department of Commerce announced its refusal to activate ZTE, the relevant sections of the global stock market were turbulent. Huawei, as the global leader in communications equipment, has its suppliers and customers all over the world. Although the current investigation has not yet been confirmed, market fears have emerged. US stocks, Hong Kong stocks and A shares have all sensed.

Last night, Huawei’s investigation rumors appeared. US stocks took the brunt. US semiconductor company’s share prices fell, Inphi fell 11.81%, NeoPhotonics fell 6.7%, the United States well-known chip makers Nvidia, AMD, Qualcomm and other stock prices fell, continuation of US technology stocks recently The collective collapsed.

Today, Huawei Concepts shares, including Hong Kong-listed companies such as China Software International, Sunny Optics, AAC Technologies and BYD Electronics, have fallen. Among them, China Software International opened sharply lower and eventually closed at HK$5.57 per share, with a drop of 15.86% on that day. Previously, brokerages reported that data shows that about half of China Software International’s revenue comes from Huawei.

Hong Kong stocks performance of some Huawei concept stocks

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In response to this downturn, China Software International responded that the company and Huawei did not cooperate in U.S. operations and that the cooperation between the two parties was mainly in China. China Software International believes that Huawei can properly handle this incident and will continue to support Huawei's business development in the future. Regarding the volatility of the company's capital market, the company attached great importance to it and did not rule out the adoption of high-level management, staff additions and other means to promote the stable development of the company's capital market.

The anxiety of A-share partners has also increased. According to incomplete statistics, in the A-share market, Huawei's suppliers and partners in communications equipment, enterprise networks, and mobile phones involve dozens of companies.

Judging from the performance of today's disk, many Huawei concept stocks, such as Shengyi Technology, Ouffy Technology, and creative information, suffered a flawless loss of more than 5%. Huawei's high-end PCB main supplier, Shengyi Technology, dropped to a standstill. Ophelia Technology, one of Huawei’s P20 Pro’s three-camera main suppliers, fell by 9.34%, and Huawei’s enterprise network (data and security) service provider’s creative information dropped by 7.72%.

Performance of some A shares of Huawei concept stocks

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The United States repeatedly failed to return to Huawei’s investigation.

Once Huawei’s information was investigated by the U.S. Department of Justice, it immediately triggered market concerns. However, in the eyes of people in the industry, there is no need for panic and pessimism until the situation is clear. In fact, it is not surprising that even Huawei is being investigated, because the US investigation into Huawei has not broken off.

As early as 2016, the U.S. Department of Finance issued an administrative summons to Huawei and accused Huawei of violating the sanctions.

In early 2017, the Federal Bureau of Investigation (FBI) under the US Department of Justice and the Office of Foreign Assets Control (OFAC) under the Ministry of Finance reconsidered Huawei.

However, the above investigation does not seem to have found any deadly evidence against Huawei. Therefore, the U.S. government can only restrict Huawei's U.S. operations by taking further measures.

In December 2017, Trump signed a bill prohibiting Huawei and ZTE from participating in the construction of US nuclear weapons infrastructure. At the same time, the legislators of the House and Senate also initiated a bill prohibiting U.S. government and its contractors from using Huawei Technologies. And ZTE’s electronic products.

In January 2018, during the US CES conference, Huawei had originally announced that it would formally sell smart phones in the United States through AT&T, the second largest mobile operator in the United States. Unexpectedly, AT&T suddenly announced the cancellation of its cooperation with Huawei, leaving the industry with an uproar.

At the Huawei Global Analyst Conference held on April 17th, 2018, when asked how to view the changes in the US business environment, Huawei's rotating chairman, Chairman Xu Zhijun, responded that the relationship between China and the United States is complicated and Huawei can do Is to do their own service to meet customer needs.

For Huawei, we are still focusing on doing our own thing well and serving our customers better. Only in this way can we survive and develop in the long run. Some things are not shifted by our will. Rather than resisting, it is better to do our own thing, so that we have more energy and time to serve our important customers and have more time and energy to build. Better products to meet the needs of our users. Something happened. It happened. ”

In addition, Yu Chengdong, CEO of Huawei's consumer business group, said in a P20 release in Paris last month that even without the US market, Huawei will be the world’s number one.

Previously, Huawei's 2017 annual report showed that Huawei's global sales revenue was 603.6 billion yuan, and its after-tax net profit was 47.455 billion yuan. The average compound annual growth rate in the past decade was 19.09% and 22.13% respectively.

What people in the industry think

Compared with ZTE's sanctions in the United States, what is the impact of Huawei's investigation? In this regard, market analysts gave different opinions.

Essence Securities:

The U.S. Justice Department last year investigated Huawei through the ZTE Incident. However, Huawei recorded a zero violation record and called for the United States to have less suspicion and work harder. The "Wall Street Journal" report may be false news, or foreign media for the US Treasury Secretary to come to China for trade talks to gain bargaining chips. The communications sector will enter the golden decade under the dual drive of the 5G technology dividend and Internet traffic bonus in the next two years.

CICC Corporation:

This time, Huawei only investigates. Unlike the case where ZTE was sanctioned by the US Department of Commerce on April 16th, investors do not need to worry too much. However, if any restrictions are imposed on Huawei, it may affect the stability of the global industrial chain. The Philadelphia Semiconductor Index fully reflects the response of the US market to this incident because China is the largest semiconductor importer. The half-price performance reflects the US market's stable mood and no panic. If Huawei is unable to produce properly due to the unfavorable results of the United States investigation, it will have a serious impact on the current global and Chinese operators' network construction and may affect the promotion of future 5G networks. In terms of mobile phones, Huawei shipped the world's third-largest mobile phone shipments. If mobile phone production is limited, related parts and components manufacturers may be affected.

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