“Trump Moves to Curb Chinese Tech Investment, Sparking AI War Fears and A HONG Kong Market Sell-Off.”, – WRITE: www.fxempire.com
Market Reaction: Hong Kong Tech Stocks Tumble Hong Kong-Listed Tech Stocks Tumbled in Respense to Friday’s Memorandum, UndersCoring Conceerns About the Us Restricting China’s Access to Us Tech. On February 24, Major Hong Kong-Lited Tech Stocks TumbLED:
- Alibaba (9988) Fell 2.02%, Followed by a 4.94% Drop on February 25.
- Baidu (9888) Declined 3.58% on February 25 After Closing The February 24 Session Flat.
- TENCENT (0700) SLID 3.22% on February 25.
Brian Tycangco, Editor and Analyst at Stansberry Research, Noted The Market’s Reaction:
“Hong Kong Market Takes A Tumble at the Open Monday Following Trump’s Memorandum on Restricting US Investments in Chinese Tech, Including AI. AS USUAL, EMODIONAL RECTION TO FEARFUL HEADLINES DOMINATE RETAIL SENTIMENT. Weak Hands Being Shaken Today. ”
Beijing’s Respense and Policy Priorities Beijing Condemned the Move. The Foreign Ministry Reportedly Warned:
“US WILL END UP HURTING ITSELF IF Shut Out Chinese Companies and Markets.”
Meanwhile, Beijing ReaffirMed It Commitment to Expanding the Tech Sector. On February 21, China’s CSRC Chairman wu Qing Declared Priority Support for Tech Firms Focussing on Core Technology Development Through Equity and Debt Finning and Mergers Anters.
Earlier, on February 19, Beijing Also Univeiled Plans to Boost Demand for Key Sectors, Including Autos, Electronics, and Home Products.
Stock Market Trends: US Tariffs and Ai Escalation The Ongoing US-CHINA TRADE AND AI RIVALRY HAS CAST UNCERTAINTY OVER MAINLAND CHINESE AND HONG Kong-Listed Stocks. Concerns are growing that the US Could Impose Tariffs on Semiconductor Chips as Early As April 2.
Despite Recent Ai-Driven Rallies, China’s Markets have experienCed mixed performance.
- CSI 300: -0.02% Year-to-Date (YTD).
- Shanghai Composite Index: +0.12% YTD.
- Hang Seng Index +14.32% YTD.
The Hang Seng Index Continues OutperForforming ITS MAINLAND PEERS, DRIVEN by AI-Linked Gains. Despite this Week’s Sell-Off, Alibaba (9988) Has Soared 56.31% YTD, While Nvidia is Down 2.99%.