U-turn: New York Stock Exchange Abandons Chinese Telecommunications Withdrawal Plan | Financial market news

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Trump has banned U.S. investments in Chinese companies with military ties as relations between the two countries deteriorate.

The New York Stock Exchange (NYSE) has said it no longer intends to go ahead with the withdrawals of China Mobile Ltd, China Telecom Corp Ltd and China Unicom Hong Kong Ltd.
The NYSE decision is a significant reversal of its decision that followed US President Donald Trump’s executive order banning investments by US entities in Chinese companies with military ties. The NYSE’s initial move threatened to worsen the already strained relationship between the two superpowers.

It was the first time that a US stock exchange announced its intention to cut a Chinese company as a direct result of rising geopolitical tensions between the United States and China.

The exchange said in a statement posted on its website that it had made the decision “in light of further consultations with the relevant regulatory authorities.”

He added that he “will continue to assess the applicability of [the executive order] to these issuers and their listing status ”.

The NYSE said last week it would remove the three companies from the list following the U.S. government’s decision in November to block investments in 31 companies deemed to be owned or controlled by the Chinese military.

Hong Kong-listed shares in all three companies surged at the announcement, with China Unicom up 9%, while China Mobile and China Telecom gained 7% each.

[Bloomberg]

‘Imprudent’

China Unicom said it plans to issue a statement later today. Representatives from China Mobile and China Telecom were not immediately available for comment.

The Chinese Foreign Ministry had called the planned delisting of the three companies “reckless” and denounced what it called “random, arbitrary and uncertain” rules.

The decision to delist the shares had heightened concerns about tit-for-tat sanctions against Chinese and US companies.

Chinese companies have looked to the US stock market for capital and international prestige for more than 20 years, raising at least $ 144 billion from some of the world’s largest investors.

Wall Street banks are particularly keen to see tensions soar after gaining unprecedented reach to operate in China last year.



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