Tencent Music (TME) stock surged 5.07% in pre-market trading on Monday, riding the wave of optimism that swept through Chinese ADRs and ETFs. The rally comes in response to the United States' decision to suspend tariffs on a wide range of consumer electronics, many of which are manufactured in China.
The temporary pause on duties affects various products, including smartphones, laptops, and memory chips. This move has provided a much-needed respite for Chinese stocks trading in the US, which have been battered by ongoing trade tensions between the two economic giants. Other major Chinese tech companies also saw significant gains, with XPeng up over 4%, and JD.com and Alibaba both rising by 3% in pre-market trading.
While the tariff suspension offers short-term relief, investors should remain cautious. The White House has emphasized that this exemption is only temporary, and separate tariffs on these items may be introduced in the future. Additionally, recent reports suggest that U.S. Treasury Secretary Scott Bessent has mentioned the potential delisting of Chinese ADRs as a bargaining chip in trade negotiations. Despite these lingering uncertainties, the market's positive reaction to the tariff suspension indicates a willingness to capitalize on any signs of easing trade tensions between the US and China.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.