The report that the Federal Investigation Bureau (FBI) was investigating sales of banned US computer equipment to Iran by ZTE, has began to show its impact on the company whose Hong-Kong listed shares tumbled, the lowest in more than three years, reports Reuters. 

It said ZTE's Hong Kong listed shares traded roughly flat at the open. Its shares have been trading at lows not seen since about March 2009.

According to the Smoking Gun website, the FBI has opened a criminal investigation into ZTE Corp over the Chinese company's sale of banned U.S. computer equipment to Iran and its alleged subsequent attempts to cover it up and obstruct a Department o Commerce probe.

According to the website “Officials with ZTE allegedly began plotting to cover up details of the Iranian deal after Reuters reported on the transaction in late-March. The news agency revealed that the telecom equipment sold to Iran was a “powerful surveillance system capable of monitoring landline, mobile, and Internet communications.” Included in the material sent to Iran were products manufactured by U.S. firms like Microsoft, Oracle, Cisco Systems, Dell, and Symantec.”

It further said that the FBI probe is being run out of the bureau’s Dallas office by agents assigned to a counterintelligence and counterespionage squad. Like the Department of Commerce investigation (and a related congressional inquiry being conducted by the House Permanent Select Committee on Intelligence), the FBI opened its case following the March 22 Reuters story by reporter Steve Stecklow.

In March, Reuters reported that  ZTE, a telecommunications equipment maker, had sold Iran's largest telecom firm a powerful surveillance system capable of monitoring landline, mobile and Internet communications, according to interviews and contract documents.