WeChat parent Tencent plunges after Trump issues ban order
New Delhi | Jagran News Desk: Shares of Chinese tech giant Tencent plunged on Friday after United States President Donald Trump signed an executive order banning transactions with the company, AFP reported.
In a major escalation of tension with Beijing, the US President on Thursday had announced sweeping bans on US transactions with TikTok parent ByteDance and Tencent, operator of the WeChat app, starting in 45 days.
Tencent plunged 10 per cent in morning trade before paring losses and ending the session down 6.75 percent at HKD518.00. This wiped off almost USD50 billion off Tencent's market capitalisation.
Thursday's move by the US President came days after his administration said it was stepping up efforts to purge “untrusted” Chinese apps from US digital networks.
The executive order will barr transactions with the ByteDance and Tencent after 45 days. Citing the "threat" posed by TikTok, the order said that the US government will take "aggressive action against the owners of TikTok to protect its national security".
"The following actions shall be prohibited beginning 45 days after the date of this order... any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd," the order read.
Days after India banned 106 Chinese apps, including TikTok, President Donald Trump had said that he would ban the Chinese app in the US as security agencies have raised concerns that the service could be used by Chinese intelligence.
India had earlier banned 59 chinese apps and the list was later widened. The move was taken in the aftermath of the violent face-off between Indian and Chinese forces on June 14 led to the death of 20 Indian soldiers.
Following India's decision, US Secretary of State Mike Pompeo had said that Trump administration was considering a ban on access to the TikTok application. "India has banned 106 Chinese apps, including TikTok, that threatened its citizens' privacy and security," Pompeo had said.
Posted By: Lakshay Raja