NYSE changes plan to delist Chinese companies
The shares of the Chinese telecom giants will not be removed from the New York Stock Exchange. Official sources report that the change in course happened after consultation with regulatory authorities that have not yet made a final decision on the ban. So, negotiations are still in progress. Three Chinese telecommunications companies, China Telecom Corp. Ltd., China Mobile Ltd., and China Unicom (Hong Kong) Ltd., were about to face a delisting from the New York Stock Exchange. However, the NYSE reversed its plans to delist shares of these companies, so they are still available for trading. The US authorities are holding consultations on whether to follow Donald Trump’s executive order prohibiting US investment in Chinese companies that allegedly support China’s military. While the discussion process continues, the New York Stock Exchange said it no longer intends to delist the above-mentioned companies. Notably, these stocks are still popular among investors, although they have fallen sharply in value. In early autumn, amid another round of conflict escalation between Washington and Beijing, Donald Trump issued an executive order barring US companies and individuals from investing in Chinese firms that were deemed a threat to US national security. According to Trump, those companies raise capital by exploiting US investors. Therefore, the purchase of the designated stocks should be banned by November 11, 2021.