NYSE begins means of delisting three Chinese language telco corporations By Reuters
© Reuters. The US flag can be seen on the New York Stock Exchange (NYSE) in Manhattan, New York City, after Election Day
NEW YORK / WASHINGTON (Reuters) – The New York Stock Exchange begins delisting securities of three Chinese telecommunications companies after President Donald Trump last month US investments in Chinese companies that Washington said are owned or controlled by the military , has blocked.
The move https://ir.theice.com/press/news-details/2020/NYSE-to-Commence-Delisting-Proceedings-in-Securities-of-Three-Issuers-to-Comply-with-Executive-Order- 13959 / default.aspx from the NYSE, which will restrict access for US investors, follows global index providers MSCI Inc, S&P Dow Jones Indices and Russell and Nasdaq, which are removing various Chinese companies from their indices.
It’s “a humble move, but at least a national security and human rights awakening,” said Roger Robinson, a former White House official who supports restricting China’s access to US investors.
The NYSE said that the issuers China Telecom (NYSE 🙂 Corporation Limited, China Mobile (NYSE 🙂 Limited (HK 🙂 and China Unicom (NYSE 🙂 (Hong Kong) Limited) were no longer eligible for listing since the order did Prohibits transactions in “securities that are designed to offer any person in the United States investment exposure to such securities of a Chinese Communist military company.”
Trump’s November Executive Order impacts some of China’s largest corporations. Https://www.defense.gov/Newsroom/Releases/Release/Article/2434513/dod-releases-list-of-additional-companies-in-accordance-with-section- 1237-of-fy.
The decision was intended to crack the teeth of a 1999 law that required the Ministry of Defense to list Chinese military companies. The Pentagon, which only fulfilled mandate this year, has named 35 companies so far, including oil company CNOOC (NYSE 🙂 Ltd and China’s top chip maker Semiconductor Manufacturing International Corp.
China has condemned this ban, and fund managers have said it could not benefit US investors who are able to borrow the stocks.
The NYSE announced that it would suspend trading in shares on either January 7th or 11th. The issuers have the right to review the decision. Each of the telecommunications companies named by the NYSE are also listed in Hong Kong.
China Telecom is also under fire from the US Federal Communications Commission (FCC), which said in early December that it had begun revoking the company’s approval to operate in the US.
The companies could not be reached for comment on a holiday in China.
Relations between Washington and Beijing have become increasingly antagonistic over the past year as the world’s two largest economies have argued over Beijing’s handling of the coronavirus outbreak, the introduction of a national security law in Hong Kong, and mounting tensions in the South China Sea.
Separately, President Donald Trump signed a law last month designed to kick Chinese companies off the US stock exchanges if they fail to comply with American auditing standards. Market participants said this would add to the rush by US-listed Chinese companies to look for listings in Hong Kong.
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