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

Tencent Holdings Ltd's stock fell 4.8% Monday and nearly reached Friday’s low.

(FILES) This file illustration photo taken on July 24, 2019 in Paris shows the logo of the Chinese instant messaging application WeChat on the screen of a tablet. - The US bans on Chinese apps TikTok and WeChat are not particularly valuable for US security, experts told AFP on August 7, 2020, but could step up broader commercial pressure on Beijing and help President Donald Trump appear tough as he seeks reelection. (Photo by Martin BUREAU / AFP) (AFP)

Tencent Holdings Ltd 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.

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