New York Stock Exchange to kickout three Chinese telco firms, cites Oval Office ban



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New York Stock Exchange to kickout three Chinese telco firms, cites Oval Office ban

In what could be contemplated as a last major move in an embittered Sino-US trade frontier from the departing US president Donald Trump, the New York Stock Exchange began the proceedings to delist securities of three Chinese telecom companies after Trump had black-listed a number of Chinese firms last month that Washington claimed could be tied to Chinese military, eventually barring US investments on the blacklisted Chinese firms.

Apart from that, latest New York Stock Exchange move that in effect would prevent American investors from accessing securities of China Telecom Corp. Ltd., China Mobile Ltd. and China Unicorn Ltd., came forth against a caustic backdrop for a gauge of global Index providers with S&P Dow Jones Indices, small-cap FTSE Russell, Nasdaq and MSCI Inc.

having been forced to rub out a flurry of Chinese companies’ securities from their indexes.

NYSE to delist three Chinese telecoms’ US securities

On top of that, the New York Stock Exchange had said in a statement earlier on Saturday that the US-listed shares of China Telecom Corp.

Ltd., China Mobile Ltd. alongside China Unicorn Ltd., would no longer be suitable for US investments as an executive order from White House had prohibited any further transaction for the aforementioned Chinese telecom companies adding, “The order prohibits any transactions in securities designed to provide investment exposure to such securities, of any Communist Chinese military company, by any United States person.

Meanwhile, backing the NYSE move, a former White House official who had supported a tightening up of belts for the Chinese companies that were seeking to raise fresh capitals from American investors, Roger Robinson said following the announcement, “A modest step, but at least an awakening to national security and human rights-related risk.

Aside from that, NYSE had also added on its statement that the Intercontinental Exchange-owned largest stock exchange in the world having had a market cap of $22.38 trillion as of December 2020, would suspend trading of aforementioned Chinese telecom companies on January 7 or January 11, nonetheless, the companies would have a right to review the decision.