(Yicai Global) July 12 -- ZTE can purportedly resume operations after clearing a hurdle by paying CNY400 million (USD60 million) to the US and shaking up its senior management.

America's commerce department has signed deal with China's ZTE Corp to lift the seven-year ban on transactions between US chip suppliers and ZTE that was in place for three months, American media reported.

This news lifted ZTE's A-shares [SHE:000063] to hit the daily 10-percent limit up bourse rules impose at CNY13.31 (USD1.99) per share and its market value to CNY55.8 billion. Its H-shares [HK:0763] rocketed 25.13 percent to close at HKD13.94 (USD1.77) per share.

ZTE has not confirmed that it may now temporarily resume its business activities. Perhaps the shock is still too great. Its rectification efforts may all prove in vain, however, if draft legislation pending before the US Congress that targets it becomes law and deals it its death blow. Stay tuned.

Editor: Benedict Armour