Wednesday, April 14, 2021

NYSE does a U-turn on Chinese telecoms delistings

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The New York Stock Exchange () has scrapped its decision to delist three telecoms companies.

President Donald Trump signed an executive order in November barring American investments in Chinese firms owned or controlled by the military.

The NYSE on 31 December that it would delist China Mobile, China Telecom and China Unicom as a result.

Now, it has U-turned its decision based on “further consultation” with regulatory authorities.

“I suspect that the NYSE never wanted to delist these stocks in the first place. They acted on guidance regarding the executive order,” Jeffrey Halley, a senior market analyst from Oanda told the BBC.

“That interpretation has clearly and the NYSE has moved quickly to change course,” he added.

The US exchange had planned to delist all three companies as early as this week.

of all three companies surged on the Hong Kong stock market – where the companies are also listed – bouncing back after from punishing sessions in both New York and Hong Kong.

China Unicom rose by 8.5%, while China Telecom jumped 8% and China Mobile rebounded by 7% on the news.

The NYSE indicated that it might revisit the decision, saying it would continue to evaluate the applicability of Mr Trump’s Executive Order to the three companies and their continued listing status.

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