China said on Saturday that it would take the necessary countermeasures after the New York Stock Exchange (NYSE) began listing securities of three Chinese telecommunications companies.
The NYSE announced earlier this week that it is trading in shares of China Mobile Ltd., China Unicom Hong Kong Ltd. and China Telecom Corp Ltd. will strike by 11 January.
The stock exchange said it made the decision following an executive order from US President Donald Trump that barred Americans from investing in companies that have ties to the Chinese military.
The move further hampered ties between Washington and Beijing, which hit heads over trade and the coronavirus pandemic during Trump’s time in the White House.
What was China’s reaction?
A spokesman for the Chinese Ministry of Commerce said in a statement that the NYSE listing ‘would greatly weaken all parties’ confidence in the US capital market. ‘
The ministry said the decision to remove the three telecommunications companies was an abuse of national security and in breach of market rules.
China “will take the necessary countermeasures to resolutely protect the legal rights and interests of Chinese companies,” the ministry spokesman said without giving details.
Will the removal of the NYSE affect Chinese businesses?
All three telecommunications companies are state-owned enterprises operating under the fixed control of Beijing. They are the only three companies in China that are allowed to provide broad telecommunications services, an industry that, according to the government, must remain under state control.
If they lose listing, it is unlikely to have a major impact on the businesses. In addition to state funds, the three companies can still attract international investment by selling shares in Hong Kong.
But the delisting is still a link between the two largest economies in the world. The Trump administration has already blacklisted electronic giant Huawei and fought to ban social media platform TikTok.
In December, the U.S. Congress passed a bill that would close U.S. markets for Chinese businesses that do not comply with U.S. oversight or financial audits.
dv / nm (AP, Reuters)