NYSE says it will no longer distribute to three Chinese telecom giants

The New York Stock Exchange said it no longer plans to distribute to three Chinese telecommunications giants.

“It dropped the plan following further advice with the relevant regulatory authorities regarding the Office of Foreign Assurance Control,” the NYSE said in a statement released late Monday.

Hong Kong-listed shares of China Telecom, China Mobile and China Unicom rallied after news of the vicissitudes.

The announcement comes after the NYSE said on December 31 that it would go ahead to delist American depository shares of China Telecom, China Mobile and China Unic.

The exchange originally planned to drop those lists so that an executive order signed by President Donald Trump in November could be followed. That order sought to prevent American companies and individuals from investing in firms that the Trump administration allegedly aided the Chinese military.

The ban is scheduled to take effect from Monday, with a little more to be inaugurated a week before the inauguration of President-Elect Joe Biden.

Biden is unlikely to make any immediate changes to US-China relations, but has repeatedly said he would prefer to work with US allies on implementing “rules of the road” for global trade.

Nevertheless, that approach would stand in contrast to the Trump administration, which often took aggressive, unilateral actions to challenge China on economic and national security issues.

This is breaking news. Please check back for updates.


Leave a Reply

Your email address will not be published.