Trump widens assault on Chinese tech firms

Voice recognition company Iflytek Co. plunged following news it is on a list of Chinese technology firms that may face restrictions from the U.S.

Iflytek slid as much as 8.2% in Shenzhen after people familiar with the matter said the U.S. is considering curbs on the company, as well as Shenzhen-listed Xiamen Meiya Pico Information Co. and Beijing Megvii Co., which is unlisted. Data firm Xiamen Meiya dropped as much as 8.4%.

The Trump administration is broadening its attack on companies linked to China’s vast surveillance network, after initially tackling Huawei Technologies Co.

Two security camera giants — Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. — were brought into the scope Wednesday, sending their share prices down more than 9% during the day. They both extended declines Thursday.

Anhui-based Iflytek has a market value of 65.81 billion yuan ($9.53 billion) and a 0.5% weighting on the Shenzhen Composite Index. Its shares are down 24% from a March high, though they are still firmly up this year.

Overseas investors own 2.35% of the company via the trading link with Hong Kong, according to exchange figures as of May 22. China Mobile Communications Group Co. is the top shareholder with a 12.85% stake.

The Shenzhen Composite Index was down 0.6% as of 10.52 a.m. local time.

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Trump widens assault on Chinese tech firms