Stock Market Operator NYSE Still Considers Stock Exchange Exit for Chinese Companies
Stock market operator New York Stock Exchange (NYSE) is reportedly considering delisting three major Chinese telecom companies.
The new move, reported by various media outlets, follows criticism from Treasury Secretary Steven Mnuchin to reverse the earlier decision to end the listing of the companies.
Earlier this week, NYSE announced its intention to delist China Mobile, China Telecom and China Unicom Hong Kong at the behest of the Trump administration. Last month, it banned American investments in Chinese companies that, according to Washington, are controlled or owned by the military in China.
It was also reported that trading in the companies would be suspended between January 7-11, and the process had begun to delist the companies.
Shortly afterwards, NYSE indicated that, after consulting with regulatory authorities, it had decided otherwise. A reason for that turn was not given. Now another U-turn would have been taken through the intervention of Mnuchin. The three companies would be considered a threat to US national security.
In turn, index provider S&P Dow Jones argued that it would not scrap US stocks of the three Chinese telecom firms from its gauges, as previously ordered. This response to the first NYSE spin. S&P Dow Jones declined to comment on the possibility that the stock market operator will change course again.
The bickering over the listing has cost the three Chinese companies more than $ 30 billion in market value. China Mobile, China Telecom and China Unicom Hong Kong have their primary listing in Hong Kong.