TikTok and WeChat’s US ban has wiped $75 billion off the value of Chinese tech giants including Alibaba and JD.com.
Last week Donald Trump announced plans to ban Chinese social media giants TikTok and WeChat in the US, giving American companies just 45 days to stop all transactions with the pair.
This has unsurprisingly seen stocks in Tencent, which owns WeChat, dive just under 10 per cent since Friday.
The fallout from the order has been far more widespread, seeing stocks in Alibaba drop as much as 6.7 per cent, while its smaller rival JD.com endured a five per cent drop.
Overall around $75.7 billion has been wiped off the market capitalisation of Chinese tech companies listed in Hong Kong.
Fears over retaliatory action from China could yet have profound affects on US companies who rely on China for both manufacturing and trade.
TikTok has fast become the go-to platform for fashion retailers looking to target Gen Z shoppers, seeing a raft of leading brands including Dior, Gucci, Balenciaga and Balmain all turn to the platform to reach new potential customers this year.
The ban is due to security concerns relating to a law in China, where ByteDance is based, that allows its government to order tech firms to collect consumer data and send it to them.
Microsoft is understood to be in talks with TikTok which could potentially see it acquire its US arm, assuring the government that this will assuage security concerns.
Twitter is also reportedly eyeing a deal with TikTok and according to the Wall Street Journal has held preliminary talks with the company.