Tencent Loses $35 Billion of Value as WeChat Ban Roils Markets
- Tech company behind the WeChat app plunges as much as 10%
- U.S. is extending campaign to curb Chinese technology firms
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The Trump administration’s move to ban U.S. residents from doing business with Tencent Holdings Ltd.’s WeChat app rippled through Chinese markets, erasing $34.6 billion from the Internet giant’s market value and sending the yuan to its biggest slump in two weeks.
The U.S. president’s executive order added to investor concern that the deteriorating U.S.-China relationship will weigh on companies, economies and markets. Initial confusion over the ban’s scope led to volatile trading on Friday, with Tencent plunging more than 10% during the morning session in Hong Kong. The stock pared losses to close down 5% after a U.S. official clarified the ban will only cover WeChat.