Stock Track | Tencent Plummets 7% as US Adds Tech Giant to Alleged Chinese Military Ties List

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Tencent Holdings Ltd., the Chinese social media and gaming behemoth, saw its stock plummet 7.03% in Tuesday's intraday trading session. This sharp decline came after the U.S. Defense Department added the tech giant to a list of companies that allegedly work with China's military.

The U.S. government's annual list, mandated under U.S. law, included 134 companies this year. Among the new additions were Tencent, battery maker CATL, chip maker Changxin Memory Technologies, and drone maker Autel Robotics. While the designation does not involve immediate bans, it can significantly damage a company's reputation and warns U.S. firms about the risks of conducting business with them.

Tencent swiftly responded, stating that its inclusion on the list was "clearly a mistake." A company spokesperson asserted, "We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding."

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