The black swan has attacked the Technology stocks, and the USA has taken action again.

Recently, $TENCENT (00700.HK)$ 、$Contemporary Amperex Technology (300750.SZ)$A total of 134 Chinese companies, including those on the list, were included in the USA Department of Defense's 1260H list.

As a result, the three major indices of the Hong Kong stock market plummeted today, and as of the time of writing, the Hang Seng Tech Index fell over 1.5%, while the Hang Seng Index and the National Index dropped nearly 2%.

Technology stocks have collectively collapsed. As of the time of writing,$TENCENT (00700.HK)$、 $XIAOMI-W (01810.HK)$ all have fallen more than 7%, $TRIP.COM-S (09961.HK)$and have dropped more than 3%, $MEITUAN-W (03690.HK)$ Fell over 2%, JD.com and others also dropped.

134 Chinese enterprises have been blacklisted by the USA.

On Monday Eastern Time, the U.S. Department of Defense released the latest version of the "Chinese Military-Related Enterprises" list – list 1260H.

This list includes a total of 134 Chinese companies, among which TENCENT, Contemporary Amperex Technology, Changxin Storage, Quectel Wireless Solutions, and Drone manufacturer Daotong Intelligent Aviation have been newly added.

In addition, the list also covers Huawei, DJI,$SMIC (00981.HK)$, 360, Changjiang Storage and other companies.

At the same time, the U.S. Department of Defense removed six Chinese companies: AI company Megvii Technology, China Marine Information Electronics,$CHINA RAIL CONS (01186.HK)$China State Construction Engineering Corporation,$CHINA TELECOM (00728.HK)$and Shenzhen Consys Science&Technology Co., Ltd.

According to relevant regulations in the USA, entities listed on this list may be subject to related entity bans or bans on commodities and services, and normal business cooperation with other companies may also be affected to some extent.

Today, Chinese companies that are "on the list" have also made urgent responses.

Among them, TENCENT stated: it is obviously an error.

"Being listed indicates that TENCENT is obviously an error; we are not a military industry enterprise or a military supply vendor. Unlike export controls or others, this list does not affect our business. Nevertheless, we will still work with relevant departments in the USA to resolve the misunderstanding."

Contemporary Amperex Technology also responded by stating that its inclusion on the list is a "mistake," and the company does not engage in any military-related activities.

Quectel Wireless Solutions stated, "We have not cooperated with the military of any country and will request the Pentagon to reconsider its designation, as this is clearly a mistake."

The U.S. Department of Defense indicated that companies included on the list have the right to request a reassessment.

It is reported that the U.S. Department of Defense's 1260H list has undergone multiple adjustments in its operation records. Previously, XIAOMI-W was also added to the list but was subsequently removed.

Last year, Advanced Micro-Fabrication Equipment Inc. China sued the U.S. Department of Defense and was removed from the military enterprise list by the end of the year; Dajiang also filed a lawsuit against the Department of Defense for being included on the list, but it remains on the list.

Wall Street is Bullish on TENCENT.

Although the "1260H list" has brought significant shock to the market, causing panic to spread, the impact may be limited.

Market analysis suggests that the fundamentals of these companies have not undergone substantial changes. For example, TENCENT's social and gaming businesses remain strong, and Contemporary Amperex Technology's leading position in the Battery field has not been shaken.

Wall Street major firms also remain bullish on TENCENT.

Citibank pointed out that TENCENT may be affected by news in the short term, but the fundamentals remain strong, and the stock price pullback is a good opportunity to increase "Buy" positions.

The bank believes it understands the market's panic reaction, but thinks that being placed on the list does not necessarily mean there is enough evidence to affirm it is the right decision.

It is believed that TENCENT will strive to work with the US Department of Defense to resolve any misunderstandings, noting that several companies successfully removed from the list last year after providing effective explanations.

Citibank also stated that investors are usually sensitive, so TENCENT's stock price may be dragged down in the short term, but believes the overall growth prospects and business fundamentals remain unchanged. They reaffirm the "Buy" rating and view the price pullback as a good opportunity to add to positions, with a target price of HKD 573 unchanged.

Goldman Sachs also pointed out in a recent report that TENCENT demonstrates strong leadership in various Internet Plus-Related fields, especially in video, payment, and gaming. The company is actively exploring in the field of generative AI, using high-performance computing and data resources to close the gap with competitors.

The bank is optimistic about TENCENT's revenue growth and profit potential, maintaining a "Buy" rating with a target price of HKD 542.

Editor/new