Huawei Technologies, one of the world's largest smartphone manufacturers, revoked the issuance of a 500 million euro bond in the first few minutes of pricing. There are rumors in Chinese social media that the company is being affected by the US Department of Justice (DoJ). survey.
Bankers and fixed-income investors who knew about the deal said that demand for the bond was still very strong late Wednesday, until Huawei canceled the transaction without explanation. This led investors to speculate that Huawei and Huawei were Being investigated in the United States.
'I have never seen this before. If a transaction is cancelled, it is because the demand is too low,' said a fixed-income investor in Hong Kong. Some investors have speculated that Huawei terminated the deal because of the company Knowing a survey, hope to protect the buyer from any impact on the price of the securities.
The U.S. government, including the Federal Communications Commission, has long suspected that Huawei is working for the Chinese government to help them gather intelligence.
A report published on the Wall Street Journal on Wednesday stated that the United States is investigating whether Huawei has violated the U.S. sanctions against Iran. Huawei is also one of the world's largest telecommunications equipment manufacturers.
Huawei said: 'Despite the enthusiastic response during the inquiry process of Eurobonds, we decided to suspend the issuance of Eurobonds.' Huawei declined to comment on the reasons for the cancellation of the deal at the last minute.
Huawei’s US investigation of media reports in a statement stated that “Huawei complies with all applicable laws and regulations wherever it operates, including the applicable United Nations (UN), United States, and EU export control and sanctions laws and regulations.”