NYSE Moves Forward with Delisting Three Major Chinese Telecom Firms
The New York Stock Exchange (NYSE) has finalized its decision to delist three prominent Chinese telecommunications companies—China Telecom, China Mobile, and China Unicom—effective January 11, 2021. This follows a week of back-and-forth announcements, including a temporary reversal earlier this week.
Why the Sudden Reversal?
The NYSE initially announced the delisting last week, citing compliance with a Trump administration executive order that restricts U.S. investments in companies linked to the Chinese military. However, on Monday, the exchange paused the decision to further evaluate whether the order applied to these firms.
By Wednesday, the NYSE confirmed its stance after receiving “new specific guidance” from the U.S. Treasury Department, clarifying that the telecom giants indeed fall under the order’s scope.
Key Details of the Delisting
- Effective Date: Trading suspensions begin at 4:00 AM ET on January 11, 2021.
- Reason: Compliance with Executive Order 13959, which targets companies with alleged ties to China’s military-industrial complex.
- Impact: While symbolic, the move underscores escalating U.S.-China tensions. The NYSE-listed shares represent only a small fraction of these firms’ global trading volume.
Broader Context
This decision aligns with the Trump administration’s broader efforts to curb Chinese influence, including attempts to ban apps like TikTok and WeChat. Analysts note that while the delisting carries political weight, its financial impact on the telecoms is minimal due to their primary listings in Hong Kong and Shanghai.
For further details, refer to the NYSE’s official announcement and the Treasury Department’s guidance.
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