If Donald Trump wanted to maintain American national security by pinpointing two of his Chinese apps on Thursday night, he couldn’t achieve much. On the other hand, if he wants to send a political message and make it perfectly clear that China’s technological rivalry with the United States comes at a price, he successfully resigns.
Shares of Chinese entertainment and technology company Tencent began 45 days from now, just hours after the announcement of the ban on Trump’s iconic WeChat messaging app in the United States on Friday.
The Hong Kong-traded stock ended 5.04% lower at HK5527.5, down more than 9% at one point. As the largest component of the Hang Seng Index, Tencent’s sinking pushed the greater Hong Kong stock market down 1.6% to 24,531.62 on Friday.
Earlier in the week, Tencent saw its stock reach an all-time high of HK $ 559, seeing its stock recovery economic recovery and its own digital skills. That was enough to make Tencent the seventh largest corporation in the world, surpassing Facebook.
The েন 35 billion drop in Tencent’s value represents a fall on Friday, compared to the rate at which WeChat could lose money in the United States simply because WeChat closed, according to The New York Times. Compare with average users.
It is not yet clear what the purpose of the executive order is, even with the statement “related to the transaction” with WeChat. Does this mean that sending or receiving messages to Way Chat users in the United States will be illegal? Does this mean that WeChat and TickTock should be removed from US app stores? Will they be removed from foreign app stores of US corporations such as Apple and Google?
Trump has even given a message to the side of the icon of China technology, which is very familiar to every adult in China, which has been heard in other Chinese technology hubs in Shenzhen and the national capital Beijing.
“The United States is using national security as an excuse and using state power to crack down on non-American business,” Chinese Foreign Ministry spokesman Wang Wenbin said in a briefing on Friday. “It’s just a hegemonic exercise.” China strongly opposes this. ”
Tiktok has threatened to use the US justice system to stop Trump’s sales activities in the United States.
The new executive order inevitably raises investors’ expectations that China will retaliate against U.S. agencies or interests – just as China retaliated last month against the forced closure of its consulate in Houston by closing the U.S. diplomatic outpost in Chengdu, and as the two countries fight each other’s expulsion of journalists. Engaged.
Is China now pushing US technology companies out of Hong Kong? There they are currently buying a knife subject to the new National Security Act, but have not yet cooperated with police requests for information.
TD Securities senior emerging market strategist Mitul Koticha, quoting Reuters, said: “It seems likely that tensions will escalate further before the US election. It could play a bad role for risky assets,” said Mitul Koticha, senior emerging market strategist at TD Securities.
While WeChat’s actions in the United States are punitive, Tencent should fear a trade, technical, or Cold War between the United States and China. It is one of the largest Chinese investors in Hollywood and has traded in lesser known gaming businesses, including Riot Games, Epic Games, as well as Temi Studios and Lightspeed LA.
Tech firms in the United States, although banned in most cases or not directly present in the consumer sector, have many reasons to fear China’s retaliatory measures. Microsoft conducts a huge research and development in China. And both Google and Facebook sell ads displayed outside of China on behalf of Chinese client corporations.
Tencent’s Friday slump in Hong Kong’s one-week Hang Seng Internet and Information Technology Index fell 2.21% to 4,695.94.
The index is comprised of some of the most prestigious technology companies in mainland China – electric car maker BYD, customer service giant Metuan-Dianping, phone equipment maker ZTE, and chip maker SMIC – all of which are expected to grow exponentially in the United States. There are companies like JD.com that have been listed by American securities regulators as second in their list of shares in Hong Kong that have gone nasty against New York-listed Chinese equity.
The new HSIIT index then presents a list of targets for Trump’s next move.