Home / INVESTING / Investing / NYSE will delist three big China telecoms, reversing decision once again

NYSE will delist three big China telecoms, reversing decision once again

The New York Roots Exchange will delist three Chinese telecommunication giants after all, saying its second reversal in two days came after new government from the Treasury Department.

The NYSE announced on Thursday it will remove U.S.-traded shares of China Telecom, China Mechanical and China Unicom from the Big Board to comply with an executive order signed by President Donald Trump. The systematize sought to bar American companies and individuals from investing in firms that the administration alleged aid the Chinese military.

The switch reversed that decision on Monday, causing much confusion. Treasury Secretary Steven Mnuchin told the disagreement that he disagreed with the reversal, a senior administration official told CNBC’s Eamon Javers.

The NYSE remarked the latest reversal was due to new guidance from Treasury’s Office of Foreign Assets Control that said people in the U.S. could not agree in certain transactions with the three companies as of next Monday. Trading of the three securities will be suspended at 4 p.m. ET on Monday, the switch said.

Shares of China Telecom were down 1.7% in early trading Wednesday, while China Transportable was down roughly 1% and China Unicom gained about 0.8%.

Chinese officials criticized the NYSE’s original purposefulness, with a spokesperson for the China Securities Regulatory Commission saying Monday that the executive order, “entirely rejected the actual situations of relevant companies and the legitimate rights of the global investors, and severely damaged market rule and tidy.”

Trump issued the order in November as part of a series of moves against Chinese companies.

In August, the president backlashed off a legal struggle for social media site TikTok with a similar order aimed at its parent company, China-based ByteDance, and Tencent. Multiple U.S. firms, encompassing Oracle and Walmart, engaged in discussions to take partial stakes in the video-sharing app.

Trump signed a bill in December that resolution force the delisting of Chinese stocks that didn’t adhere to American auditing standards, and the administration directed the Federal Retirement Parsimony Investment Board to avoid investing in Chinese companies in May.

With reporting by CNBC’s Christine Wang.

Check Also

Crypto investment firm Grayscale sees 900% jump in assets to $20 billion amid bitcoin frenzy

Mykola Tys/ | LightRocket | Getty Doppelgaengers Grayscale saw its assets under management skyrocket as …

Leave a Reply

Your email address will not be published. Required fields are marked *