Tencent shares fall 8% in Hong Kong after US designates it as Chinese military company

Jonathan Raa | Nuphoto | Getty Images

Shares of Chinese technology heavyweight Tencent Holdings fell nearly 8% in Hong Kong after the company was added to the list of “Chinese military companies” by the US Department of Defense.

The move reflects an 8% drop in Tencent's American depositary receipts on Wall Street.

Other Chinese companies added to the list include battery maker CATL, which is part of the supply chain for automakers such as Ford and Tesla.

CATL shares, which fell as much as 5.6%, were last down 2.8% in Shenzhen.

The National Defense Authorization Act of 2024 states that DoD will be prohibited from purchasing goods or services directly from listed entities in June 2026, and indirectly beginning 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.”

Tencent has a good chance of winning its delisting in U.S. courts because of the company's business model, which primarily revolves around social media and online gaming, said Ivan Su, senior equity analyst at Morningstar.

It sets the fair value of Tencent shares at HK$704 apiece, representing an increase of 86.14% from the current stock price of HK$378.2.

Separately, Vincent Su, also a senior equity analyst at Morningstar, said CATL's inclusion in the list “could discourage U.S. customers from purchasing the company's energy storage system, or ESS, batteries in the future”.

The United States has taken steps to restrict the transfer of high-end technology to China. Last year, it revoked some chip sales licenses to China's Huawei in May and unveiled drastic new export controls on critical technologies in September, including quantum computing and semiconductors.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos