The New York Stock Exchange will go ahead with the delisting of three Chinese telecom companies targeted by President Trump’s executive order, and reverse course again after the New York Stock Exchange. He said earlier this week that he would not write them off.
The New York Stock Exchange said on Wednesday that trading in US-listed shares of China Mobile Ltd., China Telecom and China Unicom (Hong Kong) Ltd. will be suspended at 4 am ET on Monday. Mr Trump’s order seeks to Banning the trading of corporate securities Which the administration says has links with the Chinese military.
The New York Stock Exchange said its latest action came after it received “new specific guidance” from the Treasury’s Office of Foreign Assets Control on Tuesday that listed the three companies’ US depositary receipts as being under Mr. Trump’s order. The NYSE statement also indicated that companies could appeal the delisting decision on the exchange.
A person familiar with the matter said the New York Stock Exchange fell on Monday due to ambiguity over whether the three companies were included in the order, but the new directive, which the Treasury Department shared with the exchange late Tuesday, made clear that the companies should be written off. The Treasury Department posted this directive online on Wednesday morning.
Wednesday’s reversal is likely to raise more questions about the exchange’s handling of the three Chinese stocks. Last week, the New York Stock Exchange said it would remove the three companies from the list in compliance with Mr. Trump’s order, only to reverse course on Monday and say it had not removed them. A person familiar with the matter said the New York Stock Exchange had declined due to ambiguity over whether the three companies were involved. New guidance from the Treasury Department appears to have solved this problem.