Chinese computing firm Lenovo could lose its spot on Hong Kong’s equity index, as it sheds value more than any other technology company.
The Beijing- and Morrisville, North Carolina-headquartered manufacturer, has lost 56%, or $5.8 billion, since it was listed on Hong Kong’s Hang Seng Index in 2013. It is one of the most shorted stocks on the benchmark, and has suffered from a variety of setbacks including the recent US ban on Chinese telco ZTE Corp, an American tax bill and a downturn in the global hardware market.
Other companies have lost an average 48% in value before being dropped from the Hang Seng, reports Bloomberg. Lenovo’s current valuation is its lowest since 2009, and it was previously knocked off the Index in 2006. Its CEO Yang Yuanqing wrote in a WeChat message last week that the firm was on course for growth. But investors are still fleeing, and Lenovo’s market share has continued to tumble throughout 2018.
Lenovo’s mobile business has plummeted, leaving investors to eye its data center arm as one of few points of hope it can ride its current financial storm. But as the US-China trade war remains simmering, and younger firms snatch more of the industry, it is difficult to see a future for Lenovo on the Hang Seng.