BUZZ-Tencent's HK shares slip to near 4-month low, Nomura sees reputational risk

Reuters
01-08
BUZZ-Tencent's HK shares slip to near 4-month low, Nomura sees reputational risk

** Shares of Tencent Holdings 0700.HK slip 2.2% to HK$371.20, their lowest since Sept 16, set for sixth straight session of fall

** Stock among most actively traded shares by turnover in early trade

** The U.S. Defense Department said on Monday it has added Chinese tech giant Tencent and others to a list of companies it says work with China's military, which Tencent on Tuesday called "a mistake" and its business would be unaffected

** "We believe the addition to the list will unlikely have any direct impact on Tencent's business or operations," Nomura said, with "Buy" rating

** "The reputational risk might be worth monitoring...The addition to the list may cause a negative impact on the subject company in the global market."

** Stocks of other Chinese firms in the list hold steady, with battery maker CATL 300750.SZ slipping 0.7%, while drone maker Autel Robotics 688208.SS and Quectel Wireless 603236.SS climb 0.7% and 1.7% respectively

** Hang Seng Tech Index .HSTECH falls 1.1% and Hang Seng Index .HSI eases 0.6%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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