0655 GMT - China's mega-cap internet companies like Tencent, Alibaba, and even Baidu, could see share price pressure following the worse-than-expected tariff announcement, according to Citi analysts in a research note. "While we are not sure whether the U.S. plans to announce any new restrictions on chip export, there have been concerns that tech companies that have cloud services and proprietary AI foundation models/capability could be under scrutiny and sanction," the analysts say. This may cause uncertainties for Alibaba, Tencent and Baidu. Companies that earn a majority of their revenue domestically from China will be relatively more resilient and less impacted by the tariffs. Within Citi's coverage, companies more immune from the new tariffs include JD.com, Meituan, NetEase, Tencent Music Entertainment, Trip.com and Kuaishou. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 02:55 ET (06:55 GMT)
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