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Shares of the Chinese technology heavyweight Tencent Holdings fell 5.4% in Hong Kong after the company was added to a list of “Chinese military companies” by the US Department of Defense.
This decision follows a drop of almost 8% TencentAmerican depositary receipts on Wall Street.
Other Chinese companies added to the list include the battery maker. CATLwhich is part of the supply chain of automobile manufacturers such as Ford And Tesla.
CATL shares, which fell as much as 5.6%, were last down 3.5% in Shenzhen.
THE National Defense Authorization Act of 2024 states that DoD will be prohibited from purchasing goods or services directly from entities on the list in June 2026, and indirectly starting in June 2027.
In response to the decision, Tencent said in a statement that its inclusion on the list was “clearly an error.”
“We are neither a company nor a military supplier. Unlike sanctions or export controls, this listing has no impact on our business,” the company added.
CATL also called the designation an “error” in its response, saying it “is not engaged in any military activity.”
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