(Yicai) Sept. 5 -- Shares of New East New Materials fell after Nokia terminated the sale of its stake in its joint venture with Huawei Technologies to the Chinese ink and adhesive products maker.

After earlier tumbling by as much as 7.5 percent, New East [SHA: 603110] closed down 1.7 percent at CNY24.51 (USD3.36) a share in Shanghai today.

The stock has plunged 45 percent since New East announced on April 9 that it would buy Nokia’s 51 percent stake in TD Tech for CNY2.1 billion (USD288 million). That deal has now fallen through after the Finnish phone maker pulled out, the Hefei-based firm said late yesterday.

If necessary, New East will take legal action to safeguard its legitimate rights and interests and those of its shareholders, the company added.

New East aimed to buy into TD Tech to expand its main business into wireless communication products. Huawei said on April 9 that the Shenzhen-based telecoms giant was unwilling to work with New East because of its inadequate capabilities in the communications industry.

Founded in 2005, TD Tech’s business is mainly in wireless communications, the Internet of Things, and terminal equipment.

Editor: Futura Costaglione