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Chinese telecommunications group ZTE fell as much as 2 per cent on Friday morning after the company announced a loss for 2016 following a $1.2bn fine for violating US sanctions on Iran and North Korea.

ZTE reported after market close on Thursday a net loss of Rmb2.36bn ($342m) for the twelve months to December , which it said was primarily linked to a $892m fine imposed by the US Departments of Justice and Commerce.

The company’s revenue rose 1 per cent to Rmb101.23bn on growth from carrier’s networks and its consumer business.

ZTE said it expects to see new growth opportunities this year as technologies including virtual reality, 5G and smart cities drive market developments. It also forecast rapid growth in network data flow.

Shares eased from the early fall to be down 0.3 per cent at HK$14.80. The benchmark Hang Seng index was up 0.1 per cent.

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