ZTE shares opened 8.5% percent in Hong Kong after issuing a clarification on Saturday that recent media reports claiming its 7nm chip has realized mass production and 5nm chip has started technology importing was misinterpreted.
They are now trading 4.25 percent lower compared with the closing price of Friday.
In the clarification, ZTE said some of the reports were factually incorrect and caused distress and disruption to the company's normal operations.
ZTE clarifies that it does not have chip manufacturing capabilities
In the field of chip design, ZTE focuses on the design of communication chips and does not have chip manufacturing capabilities, the company said.
On Friday, ZTE President Xu Ziyang said that ZTE's 7nm chips have achieved mass production and 5nm chips will be launched in 2021.
Xu said that in terms of chips, ZTE has done front-end and back-end design. However, he did mention that in terms of production and manufacturing, it is relying on global partners.
ZTE shares surged 22% on Thursday in Hong Kong as it first mentioned its 5nm chip design progress.
