Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Zomato
Reliance Jio
Sensex
National Herald
Meta
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Chinese giant Tencent loses $35 billion after Trump's ban
Business

Chinese giant Tencent loses $35 billion after Trump's ban

Chinese giant Tencent loses $35 billion after Trump's ban
Written by Shubham Sharma
Aug 07, 2020, 07:10 pm 2 min read
Chinese giant Tencent loses $35 billion after Trump's ban

A few hours ago, US President Donald Trump signed an executive order banning certain business transactions with Tencent, the Chinese conglomerate that owns WeChat messaging service. Now, a report in Bloomberg suggests that the move, and some initial confusion stemming from it, marked a big blow for Tencent's stock in Hong Kong and erased billions of dollars from its market value. Here's more.

Order
Order comes into effect in 45 days

The EO signed by the President comes into effect in 45 days, which means American residents and entities have less than two months to wrap up the prohibited business transactions with the Chinese company. Notably, a similar order has also been signed to stop transactions with ByteDance, the Chinese firm that owns video-sharing service TikTok and is in talks with Microsoft for selling it.

Effect
Tencent's shares plunged by over 10%

When the President announced the order, Tencent's shares in Hong Kong plunged by 10.1%. The decline came as the wording of the order led many to believe that Tencent was being blocked completely out of US, a country it is heavily vested in. Tencent owns Riot Games and holds a large stake in Spotify, Universal Music Group, Snap, Activision Blizzard, EA, and Epic Games.

Information
Tencent Pictures is also behind many popular movies

Along with this, Tencent Pictures, the production arm of the conglomerate, is behind several American flicks, including Wonder Woman, Top Gun: Maverick, Terminator: Dark Fate, and Venom.

Clarification
Post clarification, stocks recovered a little

As the confusion grew, a US official clarified that the scope of the ban is solely limited to transactions involving Tencent's WeChat messaging app and its payment services. Following this, the company's stock managed to trim down the losses to 4.3% by 1:53 pm local time. However, overall, this entire debacle is estimated to have caused a loss of $35 billion to the company.

Scale
Tencent is among world's largest companies by market value

Although the loss is huge, it is not something that Tencent cannot bear. The company sits among the world's largest companies by market cap and was worth $686 billion until this morning. It operates several businesses and WeChat is one of them; the service is widely used for personal and business communications within China and maintains a small user-base in US and other nations.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Shubham Sharma
Shubham Sharma
Twitter
Editor with over five years of experience in covering all things science, consumer tech, space tech, AI, infosec, and business. A commerce graduate from University of Lucknow. I have been handling Tech beat at NewsBytes since 2018.
Latest
Microsoft
Donald Trump
WeChat
Tencent
Spotify
Related
Latest
WI vs IND: Key takeaways from the T20I series
WI vs IND: Key takeaways from the T20I series Sports
Noida: Bulldozers demolish encroachments of 'BJP member' who abused woman
Noida: Bulldozers demolish encroachments of 'BJP member' who abused woman India
National CBD Day 2022: 5 benefits of CBD oil
National CBD Day 2022: 5 benefits of CBD oil Lifestyle
New-generation Tata Harrier found testing, launch expected soon: Check features
New-generation Tata Harrier found testing, launch expected soon: Check features Auto
'Thiruchitrambalam' trailer highlights: Dhanush, Nithya arrest attention in this comedy-drama
'Thiruchitrambalam' trailer highlights: Dhanush, Nithya arrest attention in this comedy-drama Entertainment
Microsoft
Hackers to smoke out Aadhaar bugs, detect security loopholes
Hackers to smoke out Aadhaar bugs, detect security loopholes India
Global outage rocks MS Teams users; Microsoft announces investigation
Global outage rocks MS Teams users; Microsoft announces investigation Technology
'Toll Fraud' malware detected: How are Android users getting affected
'Toll Fraud' malware detected: How are Android users getting affected Technology
Microsoft's Surface Laptop Go 2 launched in India: Check price
Microsoft's Surface Laptop Go 2 launched in India: Check price Technology
Abortion ruling: US companies reach out to women employees
Abortion ruling: US companies reach out to women employees World
More News
Donald Trump
Ivana Trump died of torso injury, death accidental: Medical examiner
Ivana Trump died of torso injury, death accidental: Medical examiner World
Ivana Trump, Donald Trump's first wife, passes away at 73
Ivana Trump, Donald Trump's first wife, passes away at 73 World
US: 10-year-old rape victim forced to cross state for abortion
US: 10-year-old rape victim forced to cross state for abortion World
US right-wingers angry over Pizza Hut's LGBTQ-themed book, urge boycott
US right-wingers angry over Pizza Hut's LGBTQ-themed book, urge boycott World
Texas school shooting: US to review police response to incident
Texas school shooting: US to review police response to incident World
More News
WeChat
Biden administration revokes Trump-era orders against TikTok and WeChat
Biden administration revokes Trump-era orders against TikTok and WeChat Business
Biden slams brakes on Trump's TikTok and WeChat bans
Biden slams brakes on Trump's TikTok and WeChat bans Business
Indian Government will continue ban on PUBG and TikTok
Indian Government will continue ban on PUBG and TikTok Technology
Chinese citizen journalist jailed for four years over coronavirus reportage
Chinese citizen journalist jailed for four years over coronavirus reportage World
Centre bans 43 more mobile apps; check full list here
Centre bans 43 more mobile apps; check full list here Technology
More News
Tencent
BGMI game removed from Indian app stores after government ban
BGMI game removed from Indian app stores after government ban Business
Tencent's facial scans will catch Chinese children gaming at night
Tencent's facial scans will catch Chinese children gaming at night Technology
Reddit raises $250 million in Series E funding
Reddit raises $250 million in Series E funding Business
PUBG Mobile India not granted permission for launch, confirms government
PUBG Mobile India not granted permission for launch, confirms government Technology
PUBG Mobile is returning to India: Here's everything to know
PUBG Mobile is returning to India: Here's everything to know Technology
More News
Spotify
Spotify introduces separate Play, Shuffle buttons but there's a catch
Spotify introduces separate Play, Shuffle buttons but there's a catch Technology
Italian Alpine resort uses sounds of nature to entice tourists
Italian Alpine resort uses sounds of nature to entice tourists Lifestyle
'Stranger Things 4': Breaking down 'Running Up That Hill' sequence
'Stranger Things 4': Breaking down 'Running Up That Hill' sequence Entertainment
BTS's Jungkook, Charlie Puth drop new song 'Left and Right'!
BTS's Jungkook, Charlie Puth drop new song 'Left and Right'! Entertainment
Spotify's failure to renew security certificate causes Megaphone podcast blackout
Spotify's failure to renew security certificate causes Megaphone podcast blackout Technology
More News
Related
China bans Tencent Holdings from updating and releasing new apps
China bans Tencent Holdings from updating and releasing new apps Technology
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022