The move follows Trump’s order banning U.S. investments in Chinese companies allegedly linked to the Chinese military.
The New York Stock Exchange (NYSE) is beginning the process of delisting the securities of three Chinese telecommunications companies, China Telecom Corporation Limited, China Mobile Limited and China Unicom (Hong Kong) Limited, it said in a statement.
The move comes after US President Donald Trump unveiled an executive order in November banning US investments in Chinese companies that Washington says are owned or controlled by the Chinese military, which could affect some of China’s biggest companies.
The November decree was intended to give teeth to a 1999 law requiring the Defense Ministry to compile a list of Chinese military companies. The Pentagon, which only complied with the mandate this year, has so far nominated 35 companies, including oil company CNOOC Ltd and China’s top chipmaker Semiconductor Manufacturing International Corp.
Each of the telecommunications companies named by the NYSE also has a listing in Hong Kong.
The NYSE said the issuers were no longer listed because the order prohibits any trading in securities “intended to provide investment exposure to such securities, of any Chinese Communist military company, by any American person.” .
The NYSE has said it will suspend trading on Jan.7 or Jan.11. Issuers have the right to review the decision.
Ties between Washington and Beijing have become increasingly antagonistic over the past year as the world’s two largest economies vie for Beijing’s handling of the coronavirus outbreak, the imposition of a law on national security in Hong Kong; and rising tensions in the South China Sea.