Hong Kong stocks slide as US clampdown on Chinese apps hits Tencent, other tech shares
- Trump signs order to ‘protect our national security’ from WeChat
- China’s exports surge, signalling continued economic recovery
Hong Kong and China stocks tumbled Friday, as US President Donald Trump signed an executive order banning Tencent’s WeChat to “protect our national security”, his latest act targeting Chinese companies.
Tencent fell as much as 10 per cent, before narrowing its loss to close down by 5 per cent, as Trump’s ire turned to Chinese apps.
Other tech stocks in addition to Tencent dropped, with the two-week-old Hang Seng Tech Index tumbling 2.5 per cent. It narrowed the loss later to 2.6 per cent. It had been down as much as 5.7 per cent.
Alibaba, the e-commerce giant and owner of the South China Morning Post, dropped 3 per cent, smartphone maker Xiaomi fell 3 per cent and lens manufacturing Sunny Optical slid nearly 2 per cent.
“Trump’s action will definitely provoke the Chinese government, and revenge will trigger the next round of sanction,” said Alan Li, portfolio manager of Atta Capital.
The Hang Seng Index fell as much as 3 per cent, but trimmed the loss to close 1.6 per cent lower at 24,531.62.