** Shares of Tencent 0700.HK fall 7.03% to HK$380.6, their lowest levels since Sept 19, and on course for a fifth straight session of decline

** Stock on track for the biggest one-day pct drop since Oct 8, if losses hold, and is top pct decliner in Hang Seng Index .HSI and Hang Seng Tech Index .HSTECH, which slip 0.7% and 0.5%, respectively

** The U.S. Defense Department said on Monday it has added Chinese tech giants including Tencent and battery maker CATL 300750.SZ to a list of firms it says work with China's military

** The list also included chipmaker Changxin Memory Technologies, Quectel Wireless 603236.SS and drone maker Autel Robotics 688208.SS

** Citi reiterates "buy" and view sell-off as enhanced buying opportunity while investors are usually sensitive and there could be near-term overhang on Tencent's share price

** "While we understand the market's panic reaction, we also believe the inclusion in the list does not necessarily suggest that there is sufficient evidence to confirm the decision was the correct one," Citi wrote, adding Tencent's overall growth outlook and business fundamentals remain intact

** Shares of CATL 300750.SZ fall 3.3%, Quectel 603236.SS drops 7.2% and Autel Robotics 688208.SS declines 3.2%

** The blue-chip CSI 300 Index .CSI300 gains 0.2% and the Shanghai Composite Index .SSEC adds 0.01%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))