AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Business & Finance

NYSE starts process of delisting 3 Chinese telco companies

  • The move here by the NYSE, which will limit U.S. investor access, follows global index providers MSCI Inc, S&P Dow Jones Indices and FTSE Russell and Nasdaq deleting various Chinese companies from their indexes.
Published January 1, 2021
Follow us

NEW YORK/WASHINGTON: The New York Stock Exchange is starting the process of delisting securities of three Chinese telecom companies, after President Donald Trump last month barred U.S. investments in Chinese firms Washington says are owned or controlled by the military.

The move here by the NYSE, which will limit U.S. investor access, follows global index providers MSCI Inc, S&P Dow Jones Indices and FTSE Russell and Nasdaq deleting various Chinese companies from their indexes.

It’s “a modest step, but at least an awakening to national security and human rights-related risk”, said Roger Robinson, a former White House official who supports curbing Chinese access to U.S. investors.

NYSE said that the issuers, China Telecom Corporation Limited , China Mobile Limited 0941.HK and China Unicom (Hong Kong) Limited , were no longer suitable for listing as the order prohibits any transactions in securities "designed to provide investment exposure to such securities, of any Communist Chinese military company, by any United States person."

Trump's November executive order impacts some of China's biggest companies here.

The order sought to give teeth to a 1999 law that mandated that the Department of Defense compile a list of Chinese military companies. The Pentagon, which only complied with the mandate this year, has so far designated 35 companies, including oil company CNOOC Ltd and China’s top chipmaker, Semiconductor Manufacturing International Corp.

China has condemned that ban, and fund managers have said it could benefit non-U.S. investors able to pick up the stocks.

NYSE said that it would suspend trading in the stocks on either Jan. 7 or Jan. 11. The issuers have a right to a review of the decision. Each of the telecoms companies named by the NYSE also has a listing in Hong Kong.

China Telecom is also under fire from the U.S. Federal Communications Commission (FCC), which said earlier in December that it had begun the process of revoking the company’s authorization to operate in the United States.

The companies could not be reached for comment on a public holiday in China.

Ties between Washington and Beijing have grown increasingly antagonistic over the past year as the world’s top two economies sparred over Beijing’s handling of the coronavirus outbreak, imposition of a national security law in Hong Kong and rising tensions in the South China Sea.

Separately, President Donald Trump signed a law last month that would kick Chinese companies off U.S. stock exchanges unless they adhere to American auditing standards. Market participants said this would intensify a rush by U.S.-listed Chinese firms to seek back up listings in Hong Kong.

Comments

Comments are closed.

NYSE starts process of delisting 3 Chinese telco companies

B2B barter trade mechanism: MoC empowered to impose conditions, curbs

Power tariff raise proposal not firmed up

CDWP approves seven projects worth Rs22bn

Tarin raises the alarm about inflation surge

Exchange rate: Removal of cap to inject stability into currency market: Bostan

Dar challenges financial figures presented by IK

TAL JV allowed to sell Mamikhel gas

Defence minister criticises ‘warmongering role’ of US

SNGPL says has reduced UfG losses by 23,348mmcf

FBR seeks to raise FED on motor vehicles