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One day later U-turn at the end of December decision to delist three Chinese telecommunications companies from its stock exchange, the New York Stock Exchange turned again on Wednesday and ad he would, after all, do away with the three companies.
“If you are confused, so am I. and it looks like the last days of the Trump administration will feature more latest shots at China, like the Alipay Board yesterday, ”said Jeffrey Halley, senior market analyst at Oanda, in a note, referring to an executive order from Trump that banned U.S. transactions with eight Chinese digital payment platforms, including Ant Group’s Alipay.
Chinese telecom stocks – China Mobile, China Unicom Hong Kong and China Telecom – were dragged down, plunging as much as 5% on Monday, regaining lost ground on Tuesday, then falling back on Wednesday. Trading at the three companies in the United States will be halted as of January 11.
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The radiation saga was started by a executive order President Donald Trump signed last November, banning US markets from housing what the White House calls “Communist Chinese military companies.” The executive order set a deadline of January 11 for these companies to be expelled from US markets.
In December, the Treasury Department released a listing of the 35 companies classified as “Communist Chinese Military Enterprises,” and on December 31, the NYSE decided to delist the three companies included on both the list and its stock exchange – China Mobile, China Unicom and China Telecom. Then the about-face began.
Both cancellations, according to NYSE statements, were prompted by additional guidance given by the Treasury Department’s Office of Foreign Assets Control (OFAC), apparently on whether the executive order only prohibits companies detailed by the Department of the Treasury or their subsidiaries. , too.
As the NYSE resumed with the delisting of the three telecoms on Wednesday, OFAC released an update to its FAQ on “Chinese military firm sanctions.” declaring that, yes, the sanctions also apply to the subsidiaries of the designated companies.
Florida Republican Senator Marco Rubio, who condemned the NYSE’s initial backtracking on Twitter, seems to be taking some credit for the NYSE’s latest return to delisting Chinese companies. In one declaration, Rubio said he was “happy that the NYSE decided to cancel their previous announcement” after an “intense campaign of pressure” from Rubio and his peers.
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