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Tencent shares lose $66bn in 2-day rout on WeChat ban

Falls for a third day, with shares testing 50-day average.
Image: Bloomberg

Tencent Holdings added to Friday’s sharp decline to start the week, putting the stock’s two-day loss of market value at $66 billion following America’s move to ban residents from doing business with the company’s WeChat app.

Read: Tencent plunges after Trump’s WeChat order threatens business

The stock fell 4.8% Monday and nearly reached Friday’s low. The cumulative 9.6% drop, the worst two days since October 2011, followed a four-month, 70% surge which put shares into record territory and made the internet giant Asia’s most valuable company at nearly $700 billion.

Tech stocks in Hong Kong led declines in the city Monday, with the 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 as much as 2%. 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. In addition to the the WeChat ban, Trump signed an order to prevent U.S. residents from doing business with ByteDance Ltd.’s TikTok app starting in six weeks.

© 2020 Bloomberg

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The power of a trumpet blow

He has the biggest horn in the room…

It’s a reset on unsustainable globalization at the cost of western tax payers.

may be wrong, but to me trump is getting nervous to discover that 1000’s of usa companies used china to produce their “usa” products with a much cheaper labour. now that the giant from the east is self getting wide awake with similar products & improvement thereon annually this is a hell of a threat for a country like the usa which is/was the economical / military leader in the world.

Of course the USA is nervous but look at them. Their economy is bigger than Chinas with less than a quarter of the population of China! Nigeria has just under 2/3 of the population of the US as does Brazil . India has 4 times more people than the US.And look what a mess these places are and how the populations suffer!

This shows just how far advanced the US(with all its trouble and drama) is compared to other large population countries. Of course any US President will do everything possible to protect such a pinnacle of success and for a century now!

End of comments.

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