NYSE reportedly considers continuing China telcos delisting
Published: Jan 06, 2021 01:24 PM

Pedestrians walk past the New York Stock Exchange (NYSE) in New York, the United States, Sept. 3, 2020. (Xinhua/Wang Ying)

In a second confusing U-turn, the New York Stock Exchange (NYSE) is reportedly again considering proceeding to delist three major Chinese telecommunications firms after US Treasury Secretary Steven Mnuchin weighed in after the exchange's decision to give the three companies a reprieve, according to media reports. 

According to a report by Bloomberg, Mnuchin contacted the president of the NYSE Group over its decision to keep China's three network operators, China Mobile, China Telecom and China Unicom Hong Kong, on its board. Earlier in November the US president Donald Trump signed an executive order to require investors to unload Chinese businesses that are seen as "national security threats."

On Tuesday, NYSE said it no longer intends to delist the three Chinese telecom companies "In light of further consultation with relevant regulatory authorities in connection with the Office of Foreign Assets Control," in a dramatic U-turn coming only days after it announced the move to "comply" with a presidential executive order.

The lack of clarity over the Trump administration's policy on the Chinese companies sent confusion across the market. On Tuesday, the three companies in questions all saw stock prices rally, after NYSE announced decision to keep the companies on board. According to Bloomberg, some investors had already sold shares on Monday believing that stocks faced delisting. 

On Wednesday, the stock prices of the three companies dropped over the latest news of another flip-flop of the decision of NYSE. 

Global Times