This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Huawei’s chief financial officer (CFO) Meng Wanzhou has been granted bail by a Canadian court on Tuesday, subject to a guarantee of C$10.0 million (US$7.5 million).
In a court hearing in Vancouver, Canada, Ms Meng was granted bail subject to the guarantee and other conditions. The bail agreement will require Ms Meng to be under surveillance 24 hours a day, surrender her passport, and wear a GPS tracking device.
Huawei welcomed the granted bail of Ms Meng. The company said it is looking forward to a timely resolution of the matter.
Ms Meng the daughter of Huawei’s founder Ren Zhengfei, was detained by Canadian authorities while changing planes in Vancouver, Canada on December 1 in an investigation from the United States (US) on smartphone and telecommunications equipment maker Huawei.
According to Canadian prosecutors, Ms Meng is believed to have helped Huawei prevent US sanctions on Iran by telling financial institutions that its Huawei subsidiary was a separate company.
A US district court for the eastern district of New York had issued a warrant for Ms Meng’s arrest since August 22.
The Chinese government have been exacting pressure on the US and Canada over the arrest and have demanded for Ms Meng’s release.
China’s Foreign Ministry summoned US, Canadian ambassadors to China in a “strong protest” against the CFO’s arrest, calling the detention “lawless, reasonless and ruthless,” and “extremely vicious”. In the statement to Canadian Ambassador to China John McCallum, China had warned of “serious consequences” to Canada if it did not release Ms Meng.
US President Trump says he could intervene in US vs Huawei case
US President Donald Trump could intervene on the Justice Department’s case against Huawei if the intervention is “good for this country” and “good for national security”, he said in an interview with Reuters on Tuesday.
Mr Trump added that he has not spoken to China’s President Xi Jinping regarding the court case yet, but noted that the White House has spoken with Chinese officials and the Justice Department about the case.