The NYSE (New York Stock Exchange) described that it will delist three Chinese telecommunication companies that are based on claimed links with its military. All three telecommunication companies, including China Unicom Hong Kong, China Telecom, and China Mobile, have been targeted by President Trump administration.
In the upcoming week, shares in the telecommunication giants will be eliminated on the New York Stock Exchange while the process of delisting these firms have started. Moreover, these companies earned their entire income in China and acquired no important presence in the United States.
The delisting is picturing more as a symbolic blow due to increased geopolitical skirmishes between China and the United States. Besides this, the market shares of those three companies are lightly traded in the United States while comparing to their basic listings in Hong Kong. The state-owned firms lead the telecommunications industry in China.
In November, President Trump passed a directive restricting American investments in Chinese companies that are managed or owned by the military. Under this order, American investors are restricted from selling and buying shares in the list of Chinese firms selected by the Pentagon as having military ties.
Trump slammed several Chinese companies
President Trump had performed against numerous Chinese firms, including Huawei, Tencent, and especially TikTok, on account of national security. In reaction, Beijing has responded with its own blacklist of the United States firms after tensions between both leading economic countries ramped up.
The New York Stock Exchange (NYSE) described that the shares of China Unicom Hong Kong, China Telecom, and China Mobile will be postponed from trading between seven to eleven January.
The United States stock exchanges, including Nasdaq and the NYSE, courted Chinese firms during the previous decade to list their stocks on their stock exchanges. Currently, there are above two hundred Chinese firms listed on the United States stock exchanges with the whole market capitalization of 2.2 trillion dollars.
As both counties came into the tight skirmish, several Chinese companies have founded dual listings in Hong Kong and China. In the previous month, the United States House of Representatives approved a constitution to kick Chinese firms out of the American stock exchanges in case if they don’t follow its auditing policies.