NYSE drops plans to delist 3 Chinese telecom firms
Print Edition
THE New York Stock Exchange no longer intends to move forward with the delisting of three Chinese telecommunication companies’ shares.
“At this time, the issuers will continue to be listed and traded on the NYSE,” the NYSE said in a statement on Monday, citing the Chinese firms as China Telecom Corp Ltd, China Mobile Ltd and China Unicom (Hong Kong) Ltd.
The bourse, which had planned to delist the companies before January 11, said in the brief statement it had made the decision “in light of further consultation with relevant regulatory authorities.”
Meanwhile, the NYSE regulation division will continue to evaluate the applicability of a federal government’s executive order to the issuers and their continued listing status, said the NYSE.
Hong Kong-listed shares in China Mobile closed 5 percent higher yesterday, China Telecom finished up 3 percent and China Unicom climbed more than 8 percent to a six-week high while the broader Hang Seng index rose 0.6 percent.
The reversal comes just four days after the NYSE said it has started the process of delisting the American Depositary Shares issued by the three telecom firms, under Trump’s November order barring Americans from investing in securities issued by companies deemed to be linked to the Chinese military.
The three telecom firms said that they had taken note of the NYSE’s latest announcement and would release information in accordance with regulations, adding that investors should pay attention to investment risks.
Chinese foreign ministry spokeswoman Hua Chunying said the initial US move to delist the three companies “reflected the arbitrariness, capriciousness and uncertainty of its rules and systems.”
China’s foreign ministry has lambasted “the US stretching of the concept of national security to suppress Chinese companies.”
It reiterated yesterday that the status of the United States as an international financial center relies on the confidence that global companies and investors have in the certainty of its rules.
“The suppression will have very limited impact on Chinese companies, but it will damage the national interest and image of the United States,” said Hua.
Some analysts said the reversal made sense for the bourse. “China accounts for at least one-fourth of US (stock exchanges’) foreign income. It’s a smart thing to do,” said Francis Lun, CEO of Geo Securities.
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