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Tencent plunges after Trump’s WeChat order threatens business

Shares down as much as 7.7%.
US president Donald Trump. Image: Getty Images
The Trump administration’s move to ban US residents from doing business with Tencent Holdings’s WeChat app rippled through Chinese markets, erasing $46 billion from the Internet giant’s market value and sending the yuan to its biggest slump in two weeks.The US president’s executive order, which also applied to ByteDance’s TikTok, fuelled concern that the deteriorating US-China relationship will weigh on companies, economies and markets. Confusion over the scope of the order led to volatile trading on Friday, with Tencent plunging more than 10% before paring its loss to 6.8% at the midday break.

Before Friday’s drop Tencent was worth $686 billion, making it the world’s eighth-largest company by market capitalisation and bigger than Berkshire Hathaway huge size means it occupies a dominant position on global indexes. The firm accounts for more than 6% of MSCI’s developing nation gauge and 4% of its Asian Pacific measure.

“The US government is expected to follow up with more measures targeting Tencent,” said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd. “Tencent’s overseas expansion map now looks a bit uncertain, since some M&A deals, especially if its targets are based in the US, will face challenges.”

Tencent ranked as the world’s biggest games publisher by revenue in 2019, according to Newzoo data. It also holds a large stake in Fortnite maker Epic Games and owns League of Legends developer Riot Games.

© 2020 Bloomberg

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WeChat to become WeChatOnlyOutsideUSA

…and India is also cracking down on fongkong(1.3 billion)

First it was hu-a-wei, all sorts of excuses were fronted as to why it was supposed to be banned. Not once was it mentioned that Huawei was at the forefront or cutting edge of 5G revolution, which the US was still trying to wrap its head around. Suddenly it had to be banned for any number of reasons but ‘prevent dominating’ the world in that arena. Then it was time to bedevil it in Europe and so on. Recently it was Tik-Tok, with American companies just simply plagiarizing and admitting to basically just copying it to prevent it from ‘dominance.’ The excuse is the same, ‘our populations data will likely end with the CCCP’. The same is not said of American companies dominating the world and harvesting data from everybody including heads of state everywhere. Now it is Tencent, WeChat – and the list is growing. The US umable to compete against growing effectiveness of Chinese companies and their advancement, is now resorting to outright unusual tactics to prevent them from leaving American companies and economy behind. They are even forcing fire sale of TikTok! But will this be enough,to stop the emergence of the next economic, and technological superpower? I doubt it.

China also banned: Google, facebook, twitter etc. from operating in china.
Than they proceeded to create their own clone such as weibo.

At the same time they force foreign companies wanting to do business there to create a joint-venture with SOE to gain access to their markets.

What does U.S do with your data. No much. While in mainland China you see people disappearing and jailed.

China did not ban them. They refused to adhere to Chinese regulations, hence they are not in China. Google was in China and decided to leave. We all know that American tech companies are sharing our data with the US government and China is no different it is doing the same thing.

…yes khande ….CCP demanded Google hand over IP addresses of supposed internet social transgressors

If you are so CCP supporter, for a moment think of the Uyghurs

…oh yes…someone like you thinks the CCP could never or have ever treated people like treating a minority with organ harvesting, concentration camps and obliteration of their culture

Kind makes the previous regime look lame …doesn’t it?

Leah.. Where did I say I support the CCP? But if I am forced to choose the between the two dev1ls I would pick China because she will not smile at me, when she knows she’s about to hurt me.

Wonder how much money Trump and co are making from this obvious market manipulation?

So now loving the country you lead and protecting your citizens and businesses is market manipulation…

Your ignorance and bias is astounding.

If anyone believes someone runs a country out of love, they are totally out of touch with reality

@rfjock, you are the ignorant and bias person here.

Considering Obummer is your pin-up boy, I do understand how loving your own country is a foreign concept to you.

High this early in the morning…. nice. It is a long weekend after all.

rfjock – so you believe in rooting for a hollow man, whose entire self-esteem is based on the deals he has done? An immoral, unscrupulous liar who fires anyone who poses a threat to him. What he really means on his cap is ‘Make Trump great’, and he is terrified of losing the next election, so he assembles a bunch of people to lie about hydroxychloroquine just so he can open up the US economy – never mind the hundreds of thousands more that will die. This man is absolutely not fit to be POTUS. He is not a patch on Obama, who is a genuine statesman, but whom you call childish names in order to demean him. Sighhhh….

Trump must go. Trump must go. Trump must go. Trump must go.

He is creating so much economic damage to the world, and more so to Africa.

He sounds like a salesman, he sees the positive even when he has failed with Covid-19 in his country.

He seems to reads graphs different to everyone that passed Mathematics.

I do not support either the Republicans or Democrats.

…intellect is void in Lance Goodthrust

Lets create an app similar to tiktok, any investors?

Its called Reels and Facebook is already there.

The devil works hard but Mark Zuckerberg works harder.

PRosus… Naspers …. taking a nice hiding.

Hope they come back to reality. Would be nice to get some 🙂

If the Chinese were to hit back by banning the WeChat app on Apple iPhones sold in China, nobody there would want to own one.

Nice to see Donald reducing Naspers/Prosus exec payroll costs!

America…the last kicks of a dying horse. Regimes come and go.

End of comments.

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