NYSE to delist 3 Chinese telcos to comply with US executive order
Jan 01, 2021
New York [US], January 1 : Amid growing concerns of security, the New York Stock Exchange (NYSE) said on Friday that it will delist three Chinese companies to comply with a US executive order that imposed restrictions on companies that were identified as affiliated with the Chinese military, reported South China Morning Post (SCMP).
The three companies -- China Mobile, China Telecom and China Unicom Hong Kong -- will be delisted between January 7 and January 11 and proceedings to delist them have started, according to a statement by the NYSE.
These companies having separate listings in Hong Kong generate all the revenue for China without any meaningful presence in the US. Thus using the US soil to generate investments in China - an abusive business practice. These companies are involved in civilian and military production with money from US investors.
Earlier, US President Donald Trump on November 12 had signed an executive order that prohibits Americans from investing in 31 firms.
The order prohibited US investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as having military ties.
"The Chinese Communist Party's threat to American national security extends into our financial markets and impacts American investors," the State Department said in a factual report.
"Many major stock and bond indices developed by index providers like MSCI and FTSE include malign People's Republic of China (PRC) companies, listed on the Department of Commerce Entity List and/or the Department of Defense List of Communist Chinese military companies," it added.
The executive order has resulted in a series of companies being removed from indexes compiled by MSCI, S&P Dow Jones Global Indices and FTSE Russell, reported SCMP.
Following the steps of the US and Japan, the Taiwanese Economic Affairs Ministry on Wednesday too tightened control over Chinese investments due to national security concerns.
Based on new regulations that came into effect from Wednesday, Chinese military-owned companies and Chinese Communist Party-owned companies were banned from investing in Taiwan.
