New York Stock Exchange Starts Delisting Chinese Telecom Firms
In compliance with US President Donald Trump’s administration decision to stop investment in firms with ties to the Chinese military, the New York stock exchange has begun the process of delisting three Chinese telecoms companies.
Trading in China Mobile Communications, China Telecommunications Corp and China Unicom (Hong Kong) Limited will end within the next week, subject to transactions being settled, the exchange said in a statement on Friday.
In November, President Donald Trump signed an executive order banning Americans from investing in Chinese companies deemed to be supplying or supporting Beijing’s military and security apparatus, earning a sharp rebuke from China.
The order listed 31 companies it said China was using for the “increasing exploitation” of US investment capital to fund military and intelligence services, including the development and deployment of weapons of mass destruction.
Trump’s order prohibits US companies and individuals from owning shares in any of the 31 companies, which also include video surveillance firm Hikvision and China Railway Construction Corp.
National Security Advisor Robert O’Brien said that the order would prevent Americans from unknowingly providing passive capital to Chinese companies — listed on exchanges around the world — that support the improvement of Beijing’s army and spy agencies.
Other index providers including MSCI Inc, S&P Dow Jones Indices and Nasdaq have deleted various Chinese firms from their listings.