![\"alibaba-us-investment-ban-tencent-rapidnews-rapid-news\"](\"https:\/\/dailyrapidnews.com\/eng\/wp-content\/uploads\/2021\/01\/alibaba-us-investment-ban-tencent-rapidnews-rapid-news.jpg\")
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Alibaba Group Holding Ltd. and Tencent Holdings Ltd. led a technology stocks selloff as the Trump administration considers barring investments in China\u2019s two most valuable companies.<\/p>\n
Alibaba fell more than 5% and Tencent dropped as much as 4.4% in Hong Kong trading on Thursday, tracking losses in their New York-listed securities. The State Department, Department of Defense and Treasury Department are among authorities involved in the deliberations, according to people with knowledge of the talks. The discussions focus in part on how such a move might affect capital markets, the\u00a0Wall Street Journal<\/em>\u00a0reported earlier Wednesday.<\/p>\n Imposing a ban on the two companies would mark the most dramatic escalation yet by President Donald Trump\u2019s administration, given the sheer size of the two firms and the difficulty unwinding positions. At $1.3 trillion, the combined market value of their primary listings is nearly twice the size of Spain\u2019s stock market, while the firms together account for about 11% of the weighting for MSCI Inc.\u2019s emerging markets benchmark.<\/p>\n \u201cIf the bans are implemented then it\u2019d be a huge thing for the market,\u201d said Steven Leung, executive director at Uob Kay Hian (Hong Kong) Ltd. \u201cIt\u2019s still too early to say. After the Biden administration starts, the policy could change again.\u201d<\/p>\n If implemented, the ban would further fray the relationship between the world\u2019s two largest economies, which have clashed over everything from Covid-19 to Hong Kong. Authorities in Washington have been ramping up efforts to deprive Chinese companies of U.S. capital in the final months of the Trump administration, adding to economic tensions as President-elect Joe Biden prepares to take over this month.<\/p>\n Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.<\/p>\n In late December, the US also announced that subsidiaries of Chinese companies would also be included in the ban. The Trump administration in the same month also added Semiconductor Manufacturing International Corp, China\u2019s largest chipmaker, and drone company DJI to an export blacklist. Alibaba faces challenges of its own in China, where it faces an antitrust investigation, and as regulators consider the future of its sister company Ant Group after cancelling its planned $37bn IPO in November. Jack Ma, the founder of both Alibaba and Ant, has not been seen in public since late October as regulators circle his businesses. Alibaba and Tencent declined to comment.<\/p>\n","protected":false},"excerpt":{"rendered":" Alibaba Group Holding Ltd. and Tencent Holdings Ltd. led a technology stocks selloff as the<\/p>\n","protected":false},"author":1,"featured_media":985,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\n