The New York Stock Exchange had cut three Chinese telecommunications companies after former US President Trump’s executive order banning investments in military-related companies.
China’s three largest telecommunications companies say they have requested a review of the New York Stock Exchange’s decision to delist their shares more than a week ago, a move triggered by an executive order issued by former US President Donald Trump.
The drama surrounding the delisting, which unfolded for a few days, with the stock market at one point overturning the decision before reapplying it, caused large swings in company shares as investors only had little time to react to different movements. It also prompted some global stock indexes to pull stocks.
In separate filings Thursday on the Hong Kong Stock Exchange – where they are also listed – China Mobile Ltd., China Unicom Hong Kong Ltd. and China Telecom Corp. said written requests have been filed with the NYSE and that they have also requested that trading suspensions be suspended while the review is undertaken. The review will be scheduled for at least 25 working days from the filing date of the application, depending on statements. There is no guarantee that the request for review will be accepted, the companies added.
In its radiation communications, the NYSE said it was acting to comply with an executive order issued by Trump, banning investments in companies the United States believed to be linked to the Chinese military. The ambiguously worded order was part of Trump’s efforts to punish China in the final days of his presidency.
The announcement of the review requests came hours after Joe Biden was sworn in as Trump’s successor in Washington on Wednesday.
The former administration had stepped up its attacks on China in recent months, imposing sanctions for human rights violations and in response to the nation’s crackdown on Hong Kong. The United States had also sought to sever economic ties and deny Chinese companies access to U.S. capital, an escalation of its tariff moves as part of the trade war. China’s role in the coronavirus pandemic, which has hit the United States more than anywhere else, has hardened the Trump administration’s stance against the country and its attempt to become a world leader.
All three companies lost more than $ 30 billion in market value in the final weeks of 2020 as investors pulled out of their shares following Trump’s November order. They then paid billions more after the write-offs. Subsequently, they have rebounded at least 12% in Hong Kong trade since January 8, supported by a record inflow of cash from the mainland.
China Mobile gained 0.3% at 11:42 a.m. in Hong Kong on Thursday, while China Telecom was down 2.2%. China Unicom lost 1%.
Telecommunications companies have advised investors to “exercise caution” when trading their securities.