China’s ZTE has narrowly escaped death, only to become living proof of the way political risk can dominate a stock’s fortunes.
The Hong Kong-listed shares of the Chinese telecom-equipment maker dropped about 40% Wednesday, in their first day of trading after a nearly two-month suspension. It has been in dire trouble since April, when the U.S. Commerce Department banned American companies from selling components to ZTE, which also makes smartphones. The Commerce Department said ZTE had breached an agreement made last year to...