The New York Stock Exchange said on Monday it will no longer delist three Chinese telecommunication giants, CNBC reports. The NYSE dropped the plans after “further consultation with relevant regulatory authorities in connection with the Office of Foreign Assets Control.”
- The announcement comes after the NYSE said on December 31 it would delist American depositary shares of China Telecom, China Mobile, and China Unicom.
- The plan to delist China’s telecom giants was meant to comply with an executive order that President Donald Trump signed in November targeting firms connected to the Chinese military.
- Major stock indexes such as MSCI, S&P Dow Jones Indices, and FTSE Russell, as well as popular trading app Robinhood, have also taken steps to comply with the executive order.
- The China Securities Regulatory Commission said Trump’s executive order is driven by “political purposes.”
- Trump’s investment ban takes effect on Monday, a little more than a week before President-elect Joe Biden takes office.
- Biden is not expected to make immediate changes to the U.S-China relationship and would prefer to work with the U.S allies on enforcing the “rules of the road” for global trade.
China’s telecoms stocks are currently gaining. 0728: HKG is up 3.35%, 0941: HKG is up 5.13%, 0762: HKG is up 8.50%
