NYSE Reverses Decision Once Again; To Delist Three Chinese Telecom Companies

The New York Stock Exchange will delist three Chinese telecom companies targeted by a Trump executive order, after earlier scrapping the plan following new specific guidance from the Department of Treasury.

Meanwhile, the Wall Street Journal reported that U.S. is considering prohibiting Americans from investing in Alibaba Group Holding Ltd. and Tencent Holdings Ltd.

The NYSE said Wednesday in a statement that it will move forward with the delisting of three Chinese telecom companies to comply with U.S. law.

The NYSE said it received a guidance on January 5 from the Department of Treasury's Office of Foreign Assets Control indicating that U.S. persons cannot engage in certain transactions in the ADRs of China Telecom Corporation Limited (CHA), China Mobile Limited (CHL), and China Unicom (Hong Kong) Limited (CHU) after 9:30 a.m. eastern time on January 11, 2021.

All three companies are also listed in Hong Kong.

On 4th January, the NYSE had abandoned its plans to delist the three Chinese telecom companies, after consulting with regulatory authorities. But, it did not provide specific reason for the sudden reversal.

On December 31, 2020, the NYSE said it had started proceedings to delist the securities of three Chinese telecommunications companies in order to comply with a U.S. executive order that imposed restrictions on companies identified as affiliated with the Chinese military.

The NYSE then said the three Chinese companies would be suspended from trading between January 7 and January 11.

U.S. President Donald Trump signed an executive order in November 2020 that prohibited U.S. investors from buying and selling shares in a list of Chinese companies designated by the U.S. as having military ties.

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