By Ye Xie, Bloomberg Markets Live reporter and strategist
The month-long rally in Chinese tech stocks hit a snag Monday after US President Donald Trump’s memo on restricting US-China investments soured sentiment. It’s a timely reminder that the challenges facing China goes beyond trade and the US is moving toward financial and technology decoupling as well.
The “America First Investment Policy” memo, which came out late Friday, seeks to limit Chinese strategic investments in US sectors, and scrutinizes America’s investment in China. While it didn’t cause much damage to stocks in mainland and Hong Kong Monday, Chinese ADRs sold off hard. The Nasdaq Golden Dragon China Index fell 5%, with Alibaba down about 10%.
