NYSE will delist three big China telecom companies, reversing decision again
Eventually, the New York Stock Exchange will delist the three Chinese telecom giants, saying the decision was influenced by new instructions from the US Treasury Department the exchange received the day before..
On Thursday, the NYSE announced that it will withdraw China Telecom, China Mobile and China Unicom from US trading in accordance with presidential decree Donald Trump. The decree aims to prohibit American companies and individuals from investing in companies that the administration claims are helping the Chinese military..
To date, the NYSE has sharply changed its position on this issue twice, sowing confusion among investors and sharply hitting stocks of companies..
The NYSE said the latest pullback was due to a new U.S. Treasury Office of Foreign Assets Control ruling that people in the U.S. will not be able to participate in certain transactions with the three companies from next Monday. The three securities will be suspended at 4:00 pm ET Monday, the exchange said..
Last week, the exchange announced for the first time a ban on shares of China Mobile, China Telecom and China Unicom. But on Monday she changed course, citing «further consultations with relevant regulatory bodies».
Conflicting statements from the New York Stock Exchange left investors in trouble. These three companies are also listed in Hong Kong and the shareholders sold their stakes there on Monday before buying them back..
New York stocks fell on Wednesday after the last announcement. China Telecom shares fell 3.7% and China Mobile shares fell 2.7%. China Unicom shares down 2.3%.
The Chinese government has criticized the United States for «senseless suppression of foreign companies listed in the country», and has previously stated that it will accept «necessary measures» to protect the interests of Chinese companies.
On Tuesday, Trump signed a decree banning transactions with eight Chinese apps, including Alipay Ant Group, Tencent’s QQ Wallet and WeChat Pay. However, it is not clear if it will be enforced given that it will take effect after Trump leaves the presidency..
All three telecommunications companies have traded in New York for many years. China Mobile, the country’s largest telecommunications company, has been listed on the New York Stock Exchange since 1997. China Telecom and China Unicom, meanwhile, have traded there since the early 2000s..
Trump’s order on companies with alleged military ties, which will take effect next week, gives investors the opportunity until November 2021 to opt out of financial instruments associated with such companies..