Tencent Plunges After Landing On U.S. List Of Military-Linked Firms

Companies Added to Pentagon's Military-Linked List - Tencent Holdings Ltd was added to the US government list of military-linked companies, causing a 7% drop in its Hong Kong-listed shares [1] - Contemporary Amperex Technology (CATL) was also added to the list, resulting in a 3% decline in its Shanghai-listed shares [2] - Other companies on the list include 360 Security Technology, Huawei, and BGI Genomics [8] Impact of the Pentagon's List - The designation can hurt companies' international operations as potential partners assess new risks [3] - Being on the list may impact investment or factory construction in America, and companies working with blacklisted firms may be stopped from participating in federal projects or investing in key US industries [4] Company Responses - Tencent stated that its inclusion on the list is a mistake and that it is not a military company or supplier, with no impact on its business [5] - CATL also claimed that its inclusion on the list is a mistake but did not respond to a request for comment [5] Company Backgrounds - Tencent, cofounded by billionaire Pony Ma with a net worth of $42.5 billion, has been expanding overseas and has stakes in international companies like Spotify and Supercell [6] - CATL, founded by Robin Zeng with a fortune of $35.9 billion, has been working with Ford to build a battery factory in Michigan and is a key battery supplier to Tesla [7] Removal from the List - Companies on the Pentagon's list can try to get off it, as seen with Xiaomi in 2021, but other companies like DJI and Hesai Technology remain on the list [8]