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

Heavyweight Chinese technology stocks Tencent Holdings Its shares fell by 5.4% in Hong Kong after the company was added to it List of “Chinese military companies” By the US Department of Defense.

The move comes after a decline of nearly 8% TencentWall Street American Depositary Receipts.

Other Chinese companies added to the list included a battery maker Cattlewhich is part of the supply chain of automobile manufacturers such as Ford and Tesla.

CATL shares, which were down as much as 5.6%, were last down 3.5% in Shenzhen.

the National Defense Authorization Act of 2024 It says the Department of Defense will be prohibited from purchasing goods or services directly from entities on the list in June 2026, and indirectly from June 2027.

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

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

CATL also called the designation an “error” in its response, saying it “is not involved in any military related activities.”

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