Core Viewpoint - ZTE Corporation is currently under investigation by the U.S. Department of Justice regarding compliance with the Foreign Corrupt Practices Act, and the company is committed to defending its rights through legal means while maintaining its operational normalcy [3][4]. Group 1: Compliance and Legal Matters - The company is aware of media reports concerning its compliance investigation and is in communication with the U.S. Department of Justice [3]. - ZTE emphasizes its commitment to strengthening its compliance system and opposes all forms of corruption, maintaining a zero-tolerance policy towards any related individuals [3]. Group 2: Stock Performance and Market Reactions - On December 11, ZTE's A-shares fell over 7% and H-shares dropped more than 9% during the morning session, with its subscription warrant "ZTE BNP Paribas 65 Call A" declining over 28% [4][9]. - Following the announcement of the "Doubao" mobile assistant by ByteDance, ZTE's stock initially surged, with A-shares hitting a daily limit and H-shares rising nearly 14%, but subsequently, both A and H shares fell over 20% from their highs [4]. Group 3: Financial Instruments and Market Dynamics - The "ZTE BNP Paribas 65 Call A" warrant was issued at a price of 0.29 HKD with an exercise price of 40 HKD, and its value has significantly decreased due to the drop in ZTE's H-share price [6]. - Analysts note that the warrant will only have value if ZTE's H-share price exceeds the exercise price at expiration, otherwise it will become worthless [6]. Group 4: Future Outlook and Analyst Sentiment - Analysts remain optimistic about ZTE's future, highlighting its leading capabilities in chip design and development, particularly in the fields of computing and switching chips [7]. - ZTE's self-developed chips and solutions are being utilized by major domestic companies, indicating a strong position to benefit from the domestic computing power development trend [8].