HONG KONG -- The share prices of Chinese tech conglomerate Tencent Holdings and battery maker Contemporary Amperex Technology (CATL) fell sharply on Tuesday, after they were added to a Pentagon list of companies with alleged ties to China's military.

CATL joined Tencent on a Federal Register of entities deemed to have ties with the PLA. Both companies protested their inclusion as a mistake, saying they have no ties with the military.

The U.S. Defense Department said on Monday it has added Chinese tech giants including gaming and social media leader Tencent Holdings and battery maker CATL to a list of firms it says work with China's military.

Citigroup analyst Alicia Yap reiterated a "buy" rating and "top pick status" on Tencent, according to Business Insider. She wrote in a research report that Tencent's growth outlook and fundamentals are sound. She sees the selloff as an "enhanced buying opportunity" and has a HK$573 price target on the share.

Chinese companies on the US blacklist will find it more difficult to trade with US companies. Inclusion on the list is "clearly a mistake", according to Tencent.

The US has added several Chinese technology companies, including gaming and social media giant Tencent and battery maker CATL, to a list of businesses it says work with China's military. The list serves as a warning to American companies and organisations about the risks of doing business with Chinese entities.