Trump smacks Hong Kong’s new high-flying tech stock index amid heightened fears of cold war with China
- New tech benchmark sees biggest percentage loss since launch as Trump sets off rout
- Global expansion plans of Tencent, Alibaba and NetEase put at risk by Trump’s increasing line of attacks against China
US President Donald Trump’s latest jab at China landed squarely on the chin of Hong Kong’s hot new tech stock index – and the results weren’t pretty.
The president signed an executive order banning Tencent’s WeChat from use in the US beginning in 45 days due to security concerns. That triggered a tech rout, on fears the US and China are entering a cold war that comes as China is growing its international tech prowess in 5G, smartphones, fintech and social media.
The index of the city’s largest 30 tech stocks fell 2.5 per cent, narrowing an early loss of nearly 6 per cent, and only its second loss in the two weeks since its launch.
Tencent eased 5 per cent, wiping out about US$35 billion in market cap, nearly equal to the value of the London Stock Exchange Group, the operator of the London bourse. At one point, it plunged 10 per cent. That was a reassuring sign that investors thought the sell-off was too much and provided an opportunity to pick up battered shares.
The tech board had been sizzling, climbing more than 10 per cent by its Thursday close, with food-delivery giant Meituan Dianping the hottest stock among the board’s five heavyweights, with a 16 per cent gain at that point.
