Tencent Music Entertainment Group (TME) saw its stock plummet by 8.17% in pre-market trading on Friday, as investors reacted to China's announcement of sweeping counter-tariffs on US goods. The sharp decline reflects the broader selloff in Chinese ADRs amid escalating trade tensions between the world's two largest economies.
China's Finance Ministry declared it would impose additional tariffs of 34% on all US goods starting from April 10, in response to recent tariffs implemented by US President Donald Trump. Additionally, Beijing announced export controls on certain rare earth elements and added 11 entities to its "unreliable entity" list, further straining US-China relations. The news sent shockwaves through global markets, with US stock futures and Chinese ADRs experiencing significant declines.
Tencent Music, along with other Chinese tech giants, felt the brunt of the market reaction. Alibaba fell 9%, while JD.com and PDD Holdings dropped 8%. Other notable declines included Baidu (-7%), NIO (-5%), and Li Auto (-4%). The widespread selloff in Chinese stocks underscores investors' concerns about the potential impact of escalating trade tensions on China's tech sector and the broader economy. As the situation continues to develop, market participants will closely monitor further developments and their implications for companies like Tencent Music.
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