Zoom confusion leads SEC to halt trading for Chinese company

The Feds on Thursday clamped down on investing in shares of an obscure, China-primarily based company termed Zoom Technologies, concerned that buyers have been baffling it with the teleconferencing large whose stock has surged amid the coronavirus disaster.

The Securities and Trade Fee claimed it suspended trading on the Chinese agency until finally April 9 simply because of considerations about investors mixing it up with Zoom Online video Communications, whose shares have been boosted as the coronavirus pandemic pressured people to function from household.

Zoom Technologies also has not filed any general public disclosures considering that 2015, major the SEC to worry about “the adequacy and accuracy of publicly accessible information” about the business, officials explained.

The identify is just about all the two companies have in frequent. Zoom Technologies is a Beijing-primarily based cell telecom business with a industry value of $31.3 million, although Silicon Valley’s Zoom Online video presents a refined video clip-chat system and is valued at additional than $39 billion.

Zoom Systems inventory, stated an about-the-counter industry less than the symbol “ZOOM,” has exploded in value amid the ticker confusion. Its share value climbed as large as $24.20 Monday and concluded at $10.40 on Wednesday, up from a near of $3.53 a thirty day period ahead of. The corporation also got a boost previous April all-around the time Zoom Online video went general public.

Zoom Video’s Nasdaq-shown shares, trading less than the symbol “ZM,” jumped almost 29 percent around the previous thirty day period amid the common change to distant operate to shut at $138.11 Wednesday. The Nasdaq Composite index sank far more than 17 p.c in that time.

Zoom Technologies utilised to trade on the Nasdaq Capital Industry, but delisted alone in 2014 mainly because it “no extended qualifie[d] as an running company,” among other good reasons, in accordance to press launch from the time.

A Zoom Systems representative listed on its SEC filings did not instantly respond to a request for comment Thursday. A spokesman for Zoom Online video also did not instantly return an electronic mail trying to get comment.