Friday, January 8, 2021
The New York Stock Exchange is going ahead with plans to delist shares of three Chinese state-owned phone carriers under an executive order from President Donald Trump, reversing course just days after saying they wouldn't be delisted.
The exchange said trading in the three companies, China Telecom Corp. Ltd., China Mobile Ltd. and China Unicom Hong Kong Ltd., will be suspended on Jan. 11.
The decision marks the latest about-face for the NYSE on whether to delist the companies in accordance with Trump's executive order from November barring Americans from investing in securities issued by companies deemed to be linked to the Chinese military.
The NYSE initially said on Jan. 1 that it would delist the companies, only to withdraw that decision Monday, cited some “ambiguity” about whether the three companies were in fact covered by Trump’s order.
The exchange said in a statement Wednesday that it decided to proceed with the delisting “following new specific guidance" from the Treasury Department, which oversees the enforcement of the executive order. The statement also said the companies can appeal the decision.
The Trump administration has imposed export controls and other sanctions on some Chinese companies, visa curbs on members of the ruling Communist Party and other restrictions. The Chinese government has accused Washington of misusing national security as an excuse to hamper competition and has warned that Trump’s order would hurt U.S. and other investors worldwide.
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