Another U-turn: The New York Stock Exchange WILL delist the 3 Chinese telecom companies after all: China Telecom Corporation Limited, China Mobile Limited and China Unicom (Hong Kong) Limited…

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Delisting is effective from 11 January 2021.

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January 7, 2021 00:13 JSTUpdated on January 7, 2021 13:01 JST

The New York Stock Exchange said on Wednesday it will delist three Chinese telecom companies, confirming its latest U-turn on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings.

The latest move, which is effective Jan. 11, marks the third time in less than a week the Big Board has ruled on the issue.

The flip-flopping highlights the confusion over which firms were included in an executive order issued by President Donald Trump in November barring U.S. persons from investing in publicly traded companies Washington deems to be tied to the Chinese military.

It also comes amid escalating tensions within Washington on China policy in the final days of the Trump administration.

https://asia.nikkei.com/Politics/International-relations/US-China-tensions/NYSE-moves-ahead-on-delisting-China-telecoms-in-another-U-turn

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Shares of China Mobile, China Unicom and China Telecom climb in Hong Kong

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(Reuters) – The New York Stock Exchange said on Monday it no longer intends to move forward with the delisting of China Mobile Ltd, China Telecom Corp Ltd and China Unicom Hong Kong Ltd.

The exchange said in a statement published on its website that it made the decision “in light of further consultation with relevant regulatory authorities.”

The NYSE said last week it would delist the three companies following the U.S. government’s move in November to block investment in 31 firms deemed to be owned or controlled by the Chinese military.

Hong Kong-listed shares in the three firms surged on the announcement, with China Unicom up 9%, while China Mobile and China Telecom each gained 7%.

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01 Jan 2021 11:05AM(Updated: 01 Jan 2021 11:15AM)

NEW YORK: The New York Stock Exchange is starting the process of delisting securities of three Chiense telecom companies, China Telecom Corporation Limited, China Mobile Limited and China Unicom (Hong Kong) Limited, it said in a statement https://ir.theice.com/press/news-details/2020/NYSE-to-Commence-Delisting-Proceedings-in-Securities-of-Three-Issuers-to-Comply-with-Executive-Order-13959/default.aspx on Thursday.

The move comes after President Donald Trump in November unveiled an executive order barring U.S. investments in Chinese companies that Washington says are owned or controlled by the Chinese military.

NYSE said that NYSE Regulation reached its decision that the issuers were no longer suitable for listing as the order prohibits any transactions in securities “designed to provide investment exposure to such securities, of any Communist Chinese military company, by any United States person.”

NYSE said that the issuers have a right to a review of the decision.

(Reporting by Megan Davies; Editing by Kim Coghill)Source: Reuters

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Quantitative hedge fund managers including Renaissance Technologies LLC, Dimensional Fund Advisors LP and Two Sigma Investments LP were among the largest holders in these U.S. listings but the stakes they held at the end of September were small, 13F filings show.

The three Chinese companies have separate listings in Hong Kong. All generate the entirety of their revenue in China and have no meaningful presence in the U.S. except for their listings there. Their shares are also thinly traded on the New York Stock Exchange compared to their primary listings in Hong Kong, making this NYSE delisting more of a symbolic blow amid heightened geopolitical friction between the U.S. and China.

U.S. President Donald Trump signed an order in November barring American investments in Chinese firms owned or controlled by the military, in a bid to pressure Beijing over what it views as abusive business practices. The order prohibited U.S. investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as having military ties.

Vowed to Protect

The Chinese Foreign Ministry later accused the U.S. of “viciously slandering” its military-civilian integration policies and vowed to protect the country’s companies. Chinese officials have also threatened to respond to previous Trump administration actions with their own blacklist of U.S. companies.

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1 Response to Another U-turn: The New York Stock Exchange WILL delist the 3 Chinese telecom companies after all: China Telecom Corporation Limited, China Mobile Limited and China Unicom (Hong Kong) Limited…

  1. Pingback: You can expect the NYSE not to delist Chinese oil majors since Chinese telecom companies will no longer be delisted… | weehingthong

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