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Investing.com-- Alibaba, Baidu , and BYD shares fell on Thursday following a report that the U.S. government was considering adding the three to a list of companies that support the Chinese military.
The Pentagon had concluded in October that the three should be added to the list, although the move came just before a broad trade truce between Beijing and Washington.
Alibaba (HK:9988) fell 2.2% while Baidu Inc (HK:9888) and BYD (HK:1211) shed about 1% each in Hong Kong trade. The three also weighed on the Hang Seng, which rose 0.3%.
It was not immediately clear whether the companies were added to the Pentagon’s 1260H list, which is a list of Chinese companies considered as linked to the military but operating in the United States.
While addition to the list does not entail immediate restrictions, it can hurt reputations and also dissuade U.S. companies from conducting business with the added companies.
Five other companies– Eoptolink Technology, Hua Hong Semi, RoboSense Tech, WuXi AppTec, and Zhongji Innolight– were also considered for addition to the Pentagon’s list.