In an unexpected twist, the New York Stock Exchange said on Monday that it no longer intended to delist China’s three major telecom operators, a decision that was originally announced on December 31.
The initial action targeted China Mobile, China Unicom and China Telecom as part of the Trump administration’s move to invest in companies deemed to supply and support China’s military, intelligence and security services.
The current blacklist names 35 companies, including the parent organization of the three listed telecom companies, as well as Huawei and China’s major chipmaker SMIC.
“In light of further advice with the relevant regulatory authorities,” the exchange said. The announcement states that companies will continue to be listed and traded on the NYSE, while the exchange will continue to evaluate how the executive order applies to them and their listing status.
The delisting of three telecom giants that have been trading on the NYSE for nearly two decades was viewed by some experts as merely symbolic. The trading volumes of these firms in New York are only a small percentage of their total traditional shares, thus the impact of potential delisting “will be limited on the growth and general market performance of the companies,” the China Securities Regulatory Commission said in a statement released on Sunday .
“The recent move by some political forces in the US to consistently and severely suppress listed foreign companies in US markets, even at the expense of reducing their position in global markets, has demonstrated that US regulations and institutions Can become arbitrary, reckless and unpredictable, ”the Chinese Exchange Authority said.
“We hope that the American side can show respect for the market and reverence for the rule of law, do more things that can benefit global financial markets order, legitimate investors’ rights and the stability and growth of the global economy . “
In recent times, many Chinese companies trading in the US have opted for secondary listings in Hong Kong. Alibaba, JD.com and NetEase have debuted in Hong Kong and more tech companies are reportedly weighing in on their homecoming. Owners of Chinese technology are wary of the potential domination of the US government, but they also hope to replicate Alibaba’s success in Hong Kong and see funding opportunities in China’s new Nasdaq-style board, which will be awarded to its tech houses in 2019 Was offered to entice.