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07.08.2020

Tencent stocks plunge after Trump’s decision

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The ban will take effect in 45 days and may attract retaliation from China

Stocks impacted: Tencent (TCEHY)

Tencent shares plummeted after US President Donald Trump moved to ban WeChat, a social media app owned by the Chinese company. The tech giant plunged as much as 10% in a knee-jerk reaction to the news but managed to trim intraday losses to 5% in Hong Kong. In another sign of deterioration in relations between the world’s two largest economies, Trump issued executive orders that would ban WeChat and TikTok from operating in the United States in 45 days if they are not sold by their parent companies. The ban may attract retaliation from China and pose a threat to the existing trade deal. The app WeChat provides a range of services, including instant messaging and the ability to send money to other users.

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