Luokong Technology (LKCO) Takes a Hit For All The Wrong Reason

The continued tensions between the United States and China have brought some Chinese companies into the crosshairs of trouble and the latest in that line was Luokong Technology (NASDAQ: LKCO).

Yesterday, it emerged that Luokong Technology has been included in the list made up of ‘Communist Chinese Military Companies’ made by the Department of Defense. The NASDAQ exchange has notified the company of the same and trading is going to be suspended in the company’s stock from March 15.

It was a major announcement and naturally, it led to a selloff in the Luokong stock. The stock dived by as deep as 23% after the announcement was made and it did not come as a complete surprise. As a matter of fact, the stock had started dropping in premarket session as well. However, it should be noted that Luokong is going to appeal against the move to a Hearings Panel. At this point, the stock might continue to bleed up until the end of the week as the uncertainty continues.