Why crushed Chinese technology shares such as alibaba on Monday

The beginning of the new trading week was a blessing for the shares of well -known Chinese technology. The rest period – and perhaps even reflection – in the recent trade conflict with the United States has increased difficulty in this sector, and a group of titles known for encouraging price reinforcements.

Among them Ali Baba Group (New York Stock Exchange: Child)Which achieved about 6 % profit a day. More specialized Tinetnets holders (Otc: tcehy) and JD.com (Nasdaq: JD) It did not reach this height, but still has significant gains, as it increased by approximately 3 % and about 5 %, respectively.

Some of the most dramatic price movements recently were linked to the trade war, and this trend was in fact completely on Monday.

During the weekend, President Trump announced another series of exemptions announced Definitions; This covered a wide range of technical commodities, including semiconductors, flash drives, television screens, and smartphones (hence the pop on the market from apple Stocks on Monday).

Alibaba, Tencent and JD.com manages all companies directed towards service, so in theory, none of the exemptions have benefited directly and deeply. However, the tide height benefits all boats, so what is seen as good for ingredients is also beneficial to other technicians.

To clarify this, this does not mean that all Chinese technology companies are completely outside the hook. Those who make goods in 20 categories of products covered by new exemptions are still subject to a 20 % general tariff on the goods imported to the United States of this country. But this is much lighter than the assumption in the original 145 %.

In addition, the motivation behind the exemptions would not have been to give such companies a permanent break. Granting to Chinese technology manufacturers seems to be time to establish operations in the United States, which is one of the main goals, stated for definitions in the first place: to rebuild the manufacturing base that was apologized in America.

In the aftermath of this announcement, Deputy Secretary Trump Kush Disai claimed that “these companies are stuck on their beach in the United States as soon as possible.”

On the one hand, Chinese technology manufacturers have not pushed to produce data confirming that they would do so. It seems that the country’s government is somewhat justified that it has a strong hand in the current conflict. It may be believed that he can ride the storm.

If we judge with their collective reaction, investors feel the same way. Like other manufacturing angles, many devices have been designed by the technology industry abroad for many years.