The New York Stock Exchange begins canceling the listing of 3 Chinese telecom companies
The New York Stock Exchange started the process of canceling the listing of the securities of three Chinese telecommunications companies, after US President Donald Trump last month banned US investments in Chinese companies that Washington says are owned or controlled by the military.
The move of the New York Stock Exchange comes after the global market index companies, "MSCI" and "Standard & Poor's Dow Jones" indexes, "FTSE Russell" and "Nasdaq") removed several Chinese companies from their indexes.
The New York Stock Exchange said that the issuers, "China Telecom Corporation Ltd.", "China Mobile Limited", and "China Unicom Hong Kong Ltd." are no longer suitable for listing, as an executive order prohibits any dealings in securities "designed to provide exposure." An investment on similar securities, of any Chinese Communist military company, by any American. ”
Trump's November executive order affected some major Chinese companies.
China condemned the ban, and fund managers said it could benefit non-US investors who are able to buy shares.
The New York Stock Exchange confirmed that it will suspend trading on shares either on the seventh or the eleventh of January.
Issuers have the right to review the decision.
The telecom companies identified by the New York Stock Exchange are also listed in Hong Kong.
China Telecom is under attack from the US Federal Communications Commission, which said in December it had begun a process to revoke the company's license to operate in the United States.
The companies could not be reached for comment, as China is on a public holiday.
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