Although the escalating tensions between the US and China are tapering market sentiment, CLSA believed the impact on the business operations of TENCENT (00700.HK) +6.000 (+0.966%) Short selling $1.59B; Ratio 13.808% and BABA-W (09988.HK) +6.000 (+3.856%) Short selling $2.86B; Ratio 16.029% should be limited, the broker said in a report. It believed that US regulatory measures are unlikely to hamper the development of China's AI in the short term.After the announcement of a series of export control measures by both the US and China last week, Alibaba and Tencent's stock prices plummeted by 8.5% and 6.3% respectively last Friday (10th), attributable to the increased trade tensions exerting pressure on Chinese internet stocks. Related NewsUOB Kay Hian Expects BABA-W (09988.HK) 2FQ AI Cloud Biz to Grow Strongly, Lifts TP to $203However, CLSA pointed out that apart from the gaming business, Tencent's operations are mainly focused on the domestic market. The company has already reserved enough high-performance chips for future development and can manage chip demand by procuring domestic alternatives, adopting various models, and upgrading software. Meanwhile, Alibaba.com has expanded to different regions, with a minimal presence in the US market. Also, its cloud business is expected to maintain high growth propelled by strong AI demand and the development of new chips in-house. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-15 16:25.)