Wires

ZTE shares extend fall after U.S. Congress report

HONG KONG, Oct 9 (Reuters) - ZTE Corp's shares fell by more than two percent on Tuesdayafter the U.S. Congress issued a report urging U.S. companies tostop doing business with Chinese telecom equipment makers.

Shares of ZTE, China's second largest telecom equipmentmaker, dropped by as much as 2.5 percent to HK$12.28 and quicklyextended losses to more than 6 percent in early trade,underperforming the main Hang Seng Index's 0.5 percentgain.

On Monday, the U.S. Congress put out a report that askedU.S. companies to halt their businesses with China's top twotelecom equipment makers, Huawei Technologies Co Ltdand ZTE due to national security concerns, raising fears ofretaliation from China.

(Reporting by Lee Chyen Yee; editing by Anne Marie Roantree)

((chyenyee.lee@thomsonreuters.com)(852)(2843-6901)(Reuters

Messaging: chyenyee.lee.reuters.com@reuters.net))

Keywords: ZTE/SHARES

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