NYSE to delist three Chinese telecom giants
NYSE Refuses to Delist Three Chinese Telecom Giants
New York Stock Exchange says it no longer plans to withdraw Chinese stocks from trading.
In a statement late Monday night, the NYSE said it had abandoned these plans after «further consultations with relevant regulatory authorities in conjunction with the Office of Foreign Assets Control».
China Telecom, China Mobile and China Unicom, listed on the Hong Kong Stock Exchange, rally after news of delisting canceled.
The announcement comes after the NYSE announced on December 31 that it intends to make an exemption for US depository shares of China Telecom, China Mobile and China Unicom..
The NYSE originally planned to remove quotes from Chinese telecoms in accordance with presidential decree Donald Trump, signed in November. This decree was aimed at prohibiting American companies and individuals from investing in companies that the Trump administration claims are helping the Chinese military..
Major giants of stock indexes such as MSCI, S&P Dow Jones Indices and FTSE Russell, along with the popular trading app Robinhood, have also taken steps to comply with this executive order..
NYSE says it will no longer delist three Chinese telecom giants
On Monday, the China Securities Regulatory Commission said the Trump ruling was based solely on «political goals» and «completely ignored the de facto position of the companies concerned and the legitimate rights of global investors, and also seriously damaged market rules and order».
Trump's ban on investments will go into effect next Monday, just over a week before the inauguration of the president-elect Joe Biden.
Biden is unlikely to make any immediate changes to U.S.-China relations, but has repeatedly said he would prefer to work with U.S. allies to ensure compliance «traffic rules» (rules of the road) for world trade.
However, this approach will be different from that of the Trump administration, which has often taken aggressive unilateral actions to challenge China on economic and national security issues..