The wind changed, the US postponed the decision to cancel the listing of 3 Chinese telecommunications companies


The US postponed its decision to delist three Chinese telecommunications companies

The New York Stock Exchange has just withdrawn the previous statement and confirmed that this unit will not implement the plan to delist shares of the three largest telecommunications companies in China.

The move of the New York Stock Exchange came after this unit consulted additional regulators related to the Office of Foreign Assets Control (OFAC). Photo: AFP

The New York Stock Exchange (NYSE) reiterated in a statement late on January 4 (local time) that this unit had stopped the delisting plans of the three largest telecommunications companies in China after “participating in Consultation with regulatory agencies related to the Office of Foreign Assets Control (OFAC), US Treasury Department “.

Previously, on December 31, 2020, the New York Stock Exchange announced that it would cancel the listing of deposit stocks in the US of the three largest telecommunications companies in China, including: China Telecom, China Mobile and China Unicom. This initial statement of the NYSE is said to be in compliance with the executive decree issued by US President Donald Trump in November 2020. Under this decree, Washington prohibits American investors, businesses and individuals, from investing in companies that the Trump administration has accused of “abetting” the Chinese military.

The world’s leading stock indices such as MSCI, S&P Dow Jones Indices and FTSE Russell as well as the famous trading platform Robinhood have also gradually complied with Trump’s investment ban.

Shares listed in Hong Kong of China Telecom, China Mobile and China Unicom today reversed to increase sharply after the news of NYSE postponing the delisting plan for these 3 enterprises. Specifically, China Unicom shares rose the most among the three largest telecommunications companies in China, followed by shares of China Mobile and China Telecom, up 5.13% and 3.35% respectively.

Commenting on the US move, the China Securities Regulatory Commission yesterday said that the US’s decision to delist the three previous Chinese telecommunications businesses was “political motives”. and “completely ignoring the real situation of those three businesses and the legitimate rights and interests of global investors, at the same time seriously damaging market rules and order”.

The investment ban that President Trump issued in November 2020 will take effect on January 11, a week before President-elect Joe Biden is scheduled to take office. Joe Biden is believed to be unlikely to make any immediate change to US-China relations, but the Democratic President-elect has repeatedly stated that he wants to shake hands with fellow co-workers. the US intelligence to enforce the “law of the road” to global trade.

If so, this approach will be contrary to the policy of the Trump administration over the past time because the Trump administration has pursued unilateral, aggressive actions to increase challenges to China on economic issues. national security and health.

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