Alibaba and Tencent shares fall on possible US AI chip restrictions

Shares of Alibaba and Tencent fell on Thursday after a report said the U.S. Commerce Department is preparing to finalize rules blocking Chinese AI firms from remotely accessing advanced chips via overseas data centers. The proposed measure, which could be announced this month, would expand existing semiconductor export controls to seven more countries, including Malaysia, Singapore, and Thailand, according to The Information. Alibaba's Hong Kong-listed shares dropped 5% to HK$95.6, while Tencent fell 1.5% to HK$403.6. The restrictions aim to prevent Chinese companies from remotely using advanced processors and curb smuggling of restricted chips into China. The report follows increased scrutiny of Nvidia's China-related business and Washington's efforts to enforce semiconductor export limits.