Tencentshares have jumped the most in a month after White House officials are said to have reassured American businesses that a ban on its WeChat app won’t be as broad as feared, reported Caixin.
The WeChat owner rallied 5.8% at the close in Hong Kong Monday, making it the best performer on the benchmark Hang Seng Index, after Caixin sources said the Trump administration is privately seeking to reassure US companies including Apple that they can still do business with Tencent’s WeChat messaging app in China.
In recent days, senior administration officials have been reaching out to some companies, realizing that the impact of an all-out ban on the popular app could be devastating for US technology, retail, gaming, telecommunications and other industries, according to the people.
Company management earlier this month sought to reassure investors that the executive order signed by President Trump on Aug. 6 may apply only to WeChat’s overseas operations. The ban, which came amid efforts by the White House to curtail the rise of Chinese-owned technology giants like Huawei and TikTok owner ByteDance, had erased roughly $66 billion from Tencent’s value, though today’s rebound means the stock has recouped all but $9 billion of those losses.