tech

Tencent's shares fall further as worries about US action persist

Tencent added to Friday’s sharp decline to start the week, helping lead weakness in technology shares after the US’ move to ban residents from doing business with the company’s WeChat app.

People walk past a Tencent sign at the company headquarters in Shenzhen, Guangdong province, China, August 7, 2020. 
People walk past a Tencent sign at the company headquarters in Shenzhen, Guangdong province, China, August 7, 2020.  (REUTERS)

Tencent Holdings Ltd. added to Friday’s sharp decline to start the week, helping lead weakness in technology shares after the US’ move to ban residents from doing business with the company’s WeChat app.

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

Tech stocks in Hong Kong led declines in the city Monday, with the Hang Seng Tech Index falling as much as 3.3%. The sector was also among the weakest performers in China, with the ChiNext Index dropping more than 1%.

Deteriorating relations between the US and China are raising investor concerns about the geopolitical impact on economies and markets. In addition to the WeChat ban, President Donald Trump also signed an order to prevent US residents from doing business with ByteDance Ltd.’s TikTok app starting in six weeks.

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