So Trump announced that he signed an executive order giving 45 days for American companies to sever ties with WeChat (owned by Tencent) and TikTok. Obviously this led to major Chinese stocks dropping a fairly large amount today. Tencent (-7.46%), Alibaba (-5.90%), JD.com (-4.73%).
Do you think the WeChat ban will likely go through or will it not go through in the end? Microsoft are in talks to buy TikTok which is a high possibility. But WeChat is owned by Tencent and there’s no chance of them selling it so I’m not sure where that leaves the app. Obviously the main user base is in China and other East Asian countries, so I’m wondering how big this impact will even be on Tencent in the long run. I am invested in Tencent so I’m curious what the outlook on them is now I feel like it shouldn’t have too big of an impact in the long run due to them being fairly diversified across various other areas like gaming. Also I’m wondering if Trump will go after companies like Alibaba next which I hope he doesn’t being invested Alibaba too.
Also do you think the corresponding dip of US tech stocks today was linked to Trump’s China activities or unrelated and just normal movement?