'We are not a military firm'

TENCENT: SHARES DROP AFTER US BLACKLIST

The US has blacklisted Tencent Holdings and Contemporary Amperex Technology for alleged links to the Chinese military, targeting the world's biggest gaming publisher and top electric-vehicle battery maker in a surprise move weeks before Donald Trump takes office.

CATL, a major supplier to Tesla, joined Tencent on a Federal Register of entities deemed to have ties with the People's Liberation Army. Both companies protested their inclusion as a mistake, saying they have no ties with the military.

Tencent's stock slid more than 7% in Hong Kong, notching its biggest intraday drop since October. CATL's shares fell more than 5%, also their biggest fall in about three months.

Shares in Naspers and Prosus - major shareholders in Tencent - also fell sharply by almost 10% in morning trade on the JSE.

The blacklisting threatens to escalate tensions between the world's two largest economies. While the Pentagon's blacklist carries no specific sanctions, it discourages US firms from dealing with its members.