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Shares of Chinese tech giants tencent holdings It fell 7% in Hong Kong after the company was added there. List of “Chinese military enterprises” According to the US Department of Defense.
The move comes after Tencent’s U.S. deposit receipts on Wall Street fell by nearly 8%.
Other Chinese companies added to the list include battery manufacturers. Quatreis part of the supply chain of automakers such as ford and tesla.
CATL stock fell by up to 5.6%, and was last down 2.8% on the Shenzhen market.
of National Defense Authorization Act of 2024 The Department of Defense will be prohibited from directly procuring goods and services from companies on the list starting in June 2026, and indirectly from June 2027.
In response to the decision, Tencent said in a statement that adding it to the list was a “clear mistake”.
“We are not a military company or supplier. Unlike sanctions and export controls, this listing will not impact our business,” the company added. CATL also said in its response that the designation was “erroneous” and that it was “not involved in any military-related activities.”
Morningstar senior equity analyst Ivan Su said Tencent has a good chance of winning delisting through U.S. courts because of its business model, which revolves primarily around social networking and online gaming. said.
The United States is trying to limit the transfer of high-end technology to China and is targeting Chinese tech companies. Last year, in May it revoked some licenses to sell chips to China’s Huawei, and in September it announced comprehensive new export controls on key technologies, including quantum computing and semiconductor products.
In 2022, This was announced by the U.S. Department of Commerce’s Bureau of Industry and Security. Companies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China.
