Technology

Zoom confusion causes the SEC to stop trading for the Chinese company

Zoom confusion causes the SEC to stop trading for the Chinese company
Written by Liam

The feds on Thursday got stuck with trading in shares in a obscure, China-based company called Zoom Technologies, worried that investors have confused it with the teleconference giant whose stock has risen amid the coronavirus crisis.

The Securities and Exchange Commission said it suspended trading with the Chinese company until April 9 due to concerns that investors mixed it with Zoom Video Communications, whose shares have increased as the coronavirus pandemic forced people to work from home.

Also, Zoom Technologies has not provided any public information since 2015, leading the SEC to worry about the “adequacy and accuracy of publicly available information” about the company, officials said.

The name is almost all the two companies have in common. Zoom Technologies is a Beijing-based mobile communications company with a market value of $ 31.3 million, while Silicon Valley Zoom Video offers a sophisticated video chat platform and is estimated at more than $ 39 billion.

The Zoom Technologies share, which is listed as a market without a counter, under the symbol “ZOOM,” has exploded in value amid ticker confusion. Its stock price climbed to $ 24.20 on Monday, ending at $ 10.40 on Wednesday, up from a close of $ 3.53 a month before. The company also saw an increase last April when Zoom Video went public.

Zoom Videos Nasdaq-listed shares, which are traded under the “ZM” symbol, jumped almost 29 percent in the past month amid the widespread transition to the remote work to close at $ 138.11 on Wednesday. The Nasdaq Composite Index fell more than 17 percent during that time.

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

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

Source–> https://nypost.com/2020/03/26/zoom-confusion-leads-sec-to-halt-trading-for-chinese-company/

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