Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Phone Reviews
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Phone 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

    Shubham Sharma
    Written by
    Shubham Sharma
    Twitter
    Last updated on Aug 07, 2020, 07:10 pm
    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.

  • In this article
    Order comes into effect in 45 days Tencent's shares plunged by over 10% Tencent Pictures is also behind many popular movies Post clarification, stocks recovered a little Tencent is among world's largest companies by market value
  • Order

    Order comes into effect in 45 days

    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

    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

    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.

  • China News
  • Microsoft
  • Donald Trump
  • WeChat
  • Tencent
  •  
Latest News
  • Coronavirus: India reports biggest single-day spike with 1.85L new cases
    Coronavirus: India reports biggest single-day spike with 1.85L new cases
    India
  • NewsBytes Briefing: Your WhatsApp account isn't safe anymore, and more
    NewsBytes Briefing: Your WhatsApp account isn't safe anymore, and more
    Science
  • OnePlus releases OTA update to resolve 9 Pro's overheating issue
    OnePlus releases OTA update to resolve 9 Pro's overheating issue
    Science
  • Citroen C5 X, with unique looks, breaks cover: Details here
    Citroen C5 X, with unique looks, breaks cover: Details here
    Auto
  • IPL 2021, MI beat KKR: List of records broken
    IPL 2021, MI beat KKR: List of records broken
    Sports
Related Timelines
  • Chinese giant Tencent pumps money into Flipkart: Details here
    Chinese giant Tencent pumps money into Flipkart: Details here
    Business
  • NewsBytes Briefing: TikTok US partners with Oracle, and more
    NewsBytes Briefing: TikTok US partners with Oracle, and more
    Science
  • PUBG maker Tencent will engage with India for ban reversal
    PUBG maker Tencent will engage with India for ban reversal
    Business
  • NewsBytes Briefing: Trump signs order banning business with TikTok's parent
    NewsBytes Briefing: Trump signs order banning business with TikTok's parent
    Science
Trending Topics
Bharti Airtel Mukesh Ambani WhatsApp Reliance Jio OPPO Isha Ambani
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Chris Lynn Samsung Virat Kohli
Rohit Sharma Cricket News Mahendra Singh Dhoni YouTube Hollywood News WhatsApp Bollywood News Real Madrid ISRO Yoga
Honda Batman Football News BMW Vaccine Reliance Jio OPPO Food News, Healthy Recipes Apple Tesla
Royal Challengers Bangalore Toyota Fashion Tips Amit Shah Mercedes Sidharth Malhotra Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV
Smart TV Marvel Comics Avengers Neha Kakkar
About Us Privacy Policy Terms & Conditions Contact Us News Reviews News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021