Zoom confusion leads SEC to halt trading for Chinese company

Zoom confusion leads SEC to halt trading for Chinese company

The Feds on Thursday clamped down on trading in shares of an obscure, China-based company called Zoom Technologies, concerned that investors have been confusing it with the teleconferencing giant whose stock has surged amid the coronavirus crisis.

The Securities and Exchange Commission said it suspended trading on the Chinese firm until April 9 because of concerns about investors mixing it up with Zoom Video Communications, whose shares have been boosted as the coronavirus pandemic forced people to work from home.

Zoom Technologies also hasn’t filed any public disclosures since 2015, leading the SEC to worry about “the adequacy and accuracy of publicly available information” about the company, officials said.

The name is just about all the two companies have in common. Zoom Technologies is a Beijing-based mobile telecom firm with a market value of $31.3 million, while Silicon Valley’s Zoom Video offers a sophisticated video-chat platform and is valued at more than $39 billion.

Zoom Technologies stock, listed an over-the-counter market under the symbol “ZOOM,” has exploded in value amid the ticker confusion. Its share price climbed as high as $24.20 Monday and finished at $10.40 on Wednesday, up from a close of $3.53 a month before. The company also got a boost last April around the time Zoom Video went public.

Zoom Video’s Nasdaq-listed shares, trading under the symbol “ZM,” jumped nearly 29 percent over the past month amid the widespread shift to remote work to close at $138.11 Wednesday. The Nasdaq Composite index sank more than 17 percent in that time.

Zoom Technologies used to trade on the Nasdaq Capital Market, but delisted itself in 2014 because it “no longer qualifie[d] as an operating company,” among other reasons, according to press release from the time.

A Zoom Technologies representative listed on its SEC filings did not immediately respond to a request for comment Thursday. A spokesman for Zoom Video also did not immediately return an email seeking comment.

Source : Noah Manskar Link

Follow 3-www.NET
Follow
e-News.US
  
Share
e-News.Us

Category Latest Posts