Alibaba and Tencent shares fall on US AI chip access restrictions

Shares of Alibaba and Tencent fell Thursday after reports that the U.S. Commerce Department is finalizing rules to block 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 additional countries, including Malaysia, Singapore, and Thailand. 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 using remote access to 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 strengthen enforcement of semiconductor export limits.