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NYSE reverses decision on delisting 3 Chinese telecoms

The New York Stock Exchange had said New Year's Eve that it would be delisting three Chinese telecoms due to a President Donald Trump executive order banning U.S. investment to firms linked to the Chinese military. Photo by John Angelillo/UPI
The New York Stock Exchange had said New Year's Eve that it would be delisting three Chinese telecoms due to a President Donald Trump executive order banning U.S. investment to firms linked to the Chinese military. Photo by John Angelillo/UPI | License Photo

Jan. 5 (UPI) -- The New York Stock Exchange said it will no longer delist three major Chinese telecommunications companies the Trump administration said were connected to the Asian nation's military.

The exchange made the announcement late Monday in a statement saying the decision was made "in light of further consultation with relevant regulatory authorities."

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On Thursday, the exchange announced it would be removing American depositary shares of China Telecom Corporation, China Mobile and Hong Kong-based China United Network Communications Group on Jan. 11 following President Donald Trump in November signing an executive order banning Americans from investing in Chinese military-controlled companies.

Shares of all three companies sank on Monday following the New Year's Eve decision by the NYSE.

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The exchange did not elaborate on its move to maintain listing the three companies other than stating regulators will continue "to evaluate the applicability" of Trump's executive order.

The announcement follows the China Securities Regulatory Commission on Monday saying the executive order "is based on political purposes" and has "entirely ignored the actual situations of relevant companies and the legitimate rights of the global investors."

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The CSRC spokesman said in a statement that the move to delist the companies "severely damaged market rule and order."

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Hua Chunying, China's foreign ministry spokeswoman, told reporters during a regular press briefing on Monday that China opposes the move, describing it as a U.S. effort to politicize trade issues and suppress Chinese companies through the abuse of state power.

"This is in serious violation of market competition principles and international trade rules the U.S. side always prides itself on," she said. "The position of the United States as an international financial hub hinges on global companies and investors trusting the inclusiveness and certainty of its rules and mechanisms."

She said China will take necessary measures to protect its companies without elaborating.

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Trump signed the executive order on Nov. 12 and strengthened it last month to bar investors from owning securities of subsidiaries of Chinese companies identified by the United States as having links to the People's Liberation Army.

"The People's Republic of China is increasingly exploiting United States capital to resource and to enable the development and modernization of its military, intelligence and other security apparatus," the executive order said.



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