Tencent shares fell 5% after the US designated Hong Kong as a Chinese military company

Stocks of Chinese tech heavyweights Tencent Holdings the company lost 5.4% in Hong Kong after the addition List of “Chinese military companies”. by the US Department of Defense.

The move follows a decline of about 8% Tencent‘s US depositary receipts on Wall Street.

Other Chinese companies added to the list include a battery maker CATLwhich is part of the supply chain for car 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 The DoD says it will be prohibited from purchasing goods or services from entities on the list in June 2026, and from June 2027 onwards.

In response to the decision, Tencent said in a statement that its inclusion on the list was a “clear mistake”.

“We are not a military company or supplier. Unlike sanctions or export controls, this list has no impact on our business,” the company added.

CATL also responded by calling the designation “erroneous” and saying it was “not engaged in any military activity.”

The US has targeted Chinese technology companies to limit the transfer of high-end technologies to China. Last year he In May, it revoked some licenses to sell chips to China’s Huawei and introduces new extensive export controls on critical technologies in September, including quantum computing and semiconductors.

in 2022 This was reported by the Bureau of Industry and Security of the US Department of Commerce companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China.