SHANGHAI :
ChiNext Ends Week Lower as Trump Moves Against China’s TikTok, WeChat
Tang Shihua
DATE:  Aug 07 2020
/ SOURCE:  Yicai
ChiNext Ends Week Lower as Trump Moves Against China’s TikTok, WeChat ChiNext Ends Week Lower as Trump Moves Against China’s TikTok, WeChat

(Yicai Global) Aug. 7 -- The tech-heavy ChiNext Price Index fell this week as the Trump administration took steps to ban TikTok and WeChat, two popular Chinese social media apps. Other mainland stock markets logged gains.

The Nasdaq-like ChiNext, which tracks growth enterprises in Shenzhen, tumbled almost 2.3 percent today to 2,749.95, bringing its decline for the week to 1.63 percent. It has been the best-performing mainland board this year buoyed in part by plans to allow registration-based listings following the success of such a scheme on Shanghai’s Star Market.

US President Donald Trump signed executive orders yesterday, giving US businesses 45 days to cease dealings with Tencent Holdings' WeChat and ByteDance Technology's TikTok on national security grounds. The administration had already said that unless Beijing-based ByteDance finds an American buyer for TikTok’s US operations by Sept. 15 it will ban the app. Microsoft is in talks to buy it by the deadline.

Shares of Tencent [HKG: 700] fell as much as 10 percent in Hong Kong today, and closed 5 percent lower at HKD527.50 (USD68.06).

On other markets, the Shanghai Composite Index slid 0.96 percent to 3,354.04 today, but it was still 1.33 percent higher than what it started the week with. The Star Market Board 50 Index fell 2.99 percent to 1,526.80, but was still up 0.91 percent over the five days.

The Shenzhen Component Index edged 1.55 percent lower to 13,648.50, little unchanged since the start of the week.

Editor: Emmi Laine

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Keywords:   Stock Market,Market Close