Three of China’s biggest telecom companies rally over 5% after NYSE decided not to delist them
- The New York Stock Exchange (NYSE) reversed its course and has decided to refrain from delisting China Telecom, China Mobile, and China Unicorn.
- This goes against the Trump administration’s order for American companies to cease business relations with Chinese companies allegedly providing aid to the military, which will come into effect on January 11.
- The shares of three of China’s biggest telecom companies have rallied on the Hong Kong Stock Exchange (HKD) by more than 5%.
AdvertisementThe New York Stock Exchange (NYSE), the largest stock exchange in the world worth over $22 trillion, no longer plans to delist China Telecom, China Mobile, and China Unicom.
It had initially planned to drop the three Chinese telecom giants to comply with the executive order doled out by President Donald Trump in November 2020, which directed American companies from investing in Chinese companies accused of allegedly aiding the military.
China refuted these allegations and claimed that the executive order was politically motivated.
“In light of further consultation with relevant regulatory authorities in connection with the Office of Foreign Assets Control FAQ 857… NYSE announced today that NYSE Regulation no longer intends to move forward with the delisting action in relation to the three issuers… which was announced on December 31, 2020,” NYSE said in a statement on January 4.
The shares of the three companies rallied by more than 5%, at the time of writing this article, on the Honk Kong Stock Exchange (HKD) after the news of the reversal.
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It is uncertain if other indices, like MSCI, S&P Dow Jones, and FTSE Russell will follow in NYSE’s footsteps or continue to comply with the Trump administration’s executive order, which comes into effect on January 11 — a little more than a week before President-elect Joe Biden is set to take office.
It’s also uncertain if Biden will change any US policies towards China. During this campaign, the Democratic candidate indicated that he would like to work with allies to enforce the ‘rules of the road’ for global trade.
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