Asian shares fell after a strong rally, as an executive order from former U.S. President Donald Trump imposed restrictions on Chinese investments in key U.S. sectors. Tech stocks in Hong Kong, including Alibaba and Tencent, led the declines, reversing Friday’s gains.
Trump’s directive strengthens the authority of the Committee on Foreign Investment in the United States (CFIUS) to block Chinese spending in sectors like technology, energy, and critical infrastructure. JPMorgan strategists warn that this could disrupt the recent bullish momentum in Chinese equities.
Despite the pullback, optimism over artificial intelligence and China’s growing innovation potential continue to attract investors. Markets are now eyeing Nvidia’s earnings this week, with analysts expecting heightened volatility.