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NEW YORK / WASHINGTON – The New York Stock Exchange is beginning the process of delisting the securities of three Chinese telecommunications companies, after President Donald Trump last month banned US investments in Chinese companies, according to Washington, owned or controlled by the army.
The NYSE move, which will limit access for U.S. investors, follows global index providers MSCI Inc, S&P Dow Jones Indices and FTSE Russell and Nasdaq in removing various Chinese companies from their indices.
It is “a modest step, but at least an awareness of the risks to national security and human rights,” said Roger Robinson, a former White House official who supports restricting Chinese access to the media. American investors.
The NYSE said the issuers, China Telecom Corporation Limited, China Mobile Limited 0941.HK and China Unicom (Hong Kong) Limited, were no longer eligible to be listed because the order prohibits any securities transactions “intended to provide investment exposure to these securities, of any Chinese Communist military company, by any American person. “
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On this Monday, September 21, 2020, archive photo, a giant American flag hangs on the New York Stock Exchange. (AP Photo / Mary Altaffer, file)
Trump’s November executive order is impacting some of the biggest Chinese companies here.
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The ordinance was intended to sharpen a 1999 law that required the Defense Ministry to compile a list of Chinese military companies. The Pentagon, which only complied with the mandate this year, has so far nominated 35 companies, including oil company CNOOC Ltd and China’s top chipmaker Semiconductor Manufacturing International Corp.
China has condemned the ban, and fund managers have said it could benefit non-U.S. Investors able to recover the shares.
The NYSE has said it will suspend trading in the shares on January 7 or January 11. Issuers have the right to review the decision. Each of the telecommunications companies named by the NYSE also has a listing in Hong Kong.
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China Telecom is also facing criticism from the United States Federal Communications Commission (FCC), which said earlier in December that it had begun the process of revoking the company’s authorization to operate in the United States.
The companies could not be reached for comment on a holiday in China.
Ties between Washington and Beijing have become increasingly antagonistic over the past year as the world’s two major economies vie for Beijing’s handling of the coronavirus outbreak, the imposition of a law on the national security in Hong Kong and rising tensions in the South China Sea.
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Separately, President Donald Trump signed a law last month that would kick Chinese companies off US stock exchanges unless they adhere to US auditing standards. Market participants said it would intensify the rush of Chinese companies listed in the United States to seek safeguard listings in Hong Kong.
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