Tencent Music Entertainment Group (TME) saw its stock plummet 10.89% in Friday's trading session, 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. The news sent shockwaves through global markets, with Chinese ADRs experiencing significant declines across the board. Alibaba fell 8.7%, JD.com dropped 8.8%, and PDD Holdings slipped 8.2%. Other tech giants such as Baidu (-6.7%), NIO (-4.6%), and Li Auto (-4.3%) also felt the impact.
The escalation in trade tensions has raised concerns about the potential impact on China's tech sector and the broader economy. Beijing's additional measures, including export controls on certain rare earth elements and the addition of US entities to its "unreliable entity" list, have further strained US-China relations. As the situation continues to develop, market participants will closely monitor further developments and their implications for companies like Tencent Music and other Chinese firms listed in the US.
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