The share price of online-music catalogue provider 7DIG soared by over 25 percent shortly after news that a US TikTok ban was to come into effect on Sunday.
A statement by the US Department of Commerce confirmed that as of 20 September, downloads in the US of TikTok as well as WeChat will be banned:
“Today’s actions prove once again that President Trump will do everything in his power to guarantee our national security and protect Americans from the threats of the Chinese Communist Party.”Wilbur Ross, U.S. Department of Commerce Secretary
With 7digital providing its music catalogue to Triller and expected to receive a financial uplift the more time the app is used, investors have ploughed back into the share which has lost a large amount of its gains from August following the initial announcement.
Ross added that:
“At the President’s direction, we have taken significant action to combat China’s malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”
At the time of writing shares in 7DIG are currently trading at 2.50p – some way off the highs of just over 3.30p reached last month.