Tencent shares fell by 5.4% in Hong Kong after being added to the US Department of Defense’s list of Chinese military companies. The inclusion comes amid a near 8% drop in Tencent’s US depository receipts on Wall Street. Other affected companies include battery maker CATL, which has denied any military involvement.
The National Defence Authorization Act of 2024 prohibits the DoD from procuring goods or services directly from listed entities until June 2026 and indirectly until June 2027. Both Tencent and CATL have called the designation “a mistake”, stating they are not involved in military activities. The move is part of the US’s efforts to restrict transfer of high-end technologies to China, following recent restrictions on Huawei and new export controls on critical technologies like quantum computing and semiconductor goods.
Source: https://www.cnbc.com/2025/01/07/tencent-shares-fall-in-hong-kong-after-us-adds-it-to-list-of-chinese-military-companies.html