Tencent shares fall 4.6% amid US Trump-China clash

The stock fell 4.6% on Monday, approaching Friday’s lowest level, before finishing morning trade down 3.3%. Tencent lost $35 billion of market value to end last week.

Tencent Holdings Ltd. started the week in red, adding to Friday’s sharp decline, The weakness in technology shares is seen after the U.S.’ move to ban residents from doing business with the company’s WeChat app.

The stock fell 4.6% on Monday, approaching Friday’s lowest level, before finishing morning trade down 3.3%. Tencent lost $35 billion of market value to end last week as investors weighed the vaguely worded order from President Donald Trump, which initially triggered fears that it applied to a number of the internet giant’s operations.

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Hang Seng Tech Index falling as much as 3.6%. The sector was also among the weakest performers in China, with the ChiNext Index dropping more than 1%. Suppliers to Apple Inc. saw some of the biggest declines.

Deteriorating relations between the U.S. and China are raising investor concerns about the geopolitical impact on economies and markets. The stakeholders are at a risk as Trump also recently signed an order to prevent U.S. residents from doing business with ByteDance Ltd.’s TikTok app starting in six weeks.

 

Source: Bloomberg