Sources tell FOX Business’s Charlie Gasparino that the decision is part of Wall Street’s broader warming of China.
The New York Stock Exchange is reportedly reconsidering its decision to acquire China Telecom Corporation Ltd., China Mobile Ltd. and China Unicom Ltd. to delist after Finance Minister Steven Mnuchin issued a statement Tuesday stating NYSE President Stacey Cunningham said he disagreed with the exchange’s decision to reverse its course.
The NYSE first announced that it “no longer intends to proceed with delisting” in a statement, citing “further consultation” with U.S. regulators.
The move came days after the NYSE said it had begun the process of listing the securities of the three largest telecommunications companies in China on Thursday in response to an executive order by President Trump in November, which included a deal in securities which is publicly traded, or prohibited by any other. securities derived from, or designed to provide investment exposure to, such securities, of any Communist Chinese military company. ‘
A NYSE spokesman, who is owned by the parent Intercontinental Exchange, declined to comment. A Mnuchin representative did not immediately return FOX Business’ request for comment.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| ICE | INTERCONTINENTAL EXCHANGE INC. | 113.54 | +0.24 | + 0.21% |
NEW YORK stock exchange exchange course, will not remove Chinese telecommunications
The stock exchange planned to stop trading the shares between January 7 and January 11.
The stock exchange also noted in the delisting announcement that issuers have a “right to a review of this provision by a committee of the board of directors of the stock exchange” and that it will apply the decision after completion of all applicable procedures, including “any appeal against the decision of the NYSE regulatory staff. ‘
CHINA REALIZATION FOR REALIZATION FOR NYSE’S COMPANIES ‘COMPANIES
Three sources familiar with the matter told Bloomberg that the initial decision to delist China’s three largest telecommunications companies was intended to comply with President Trump’s mandate, but that the stock market decided to change course when it becomes unclear that the companies are actually banned. The sources added that if and when the scholarship receives confirmation from the government about what is banned, it will continue.
The Treasury Department on Monday posted a frequently asked question on its website in which it clarified the order a few hours before the stock exchange announced its decision not to delist the companies, which said the order did not including US funds and related market intermediaries and participants. to sell their shares in publicly traded securities (and securities derived from or designed to give investment exposure to such securities) of the identified Communist Chinese military companies.
It is understood that one of the sources said that the treasury can provide further clarification through the Office of Foreign Asset Control.
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The Chinese were very critical of the move to delist the shares. The country’s Securities Regulatory Commission said in a statement on Friday that the executive order was “based on political purposes” and “severely damaged the real situations of relevant companies and the legal rights of world investors, and severely damaged market rule and order. ‘
A spokesman for the Chinese Ministry of Commerce added in a statement on Saturday that China “abuses the Americans against the abuse of national security by listing Chinese companies in the so-called ‘Communist China Military Companies’ list” and that it takes the necessary countermeasures will take to resolutely protect the legal rights and interests of Chinese companies. ”
In addition, the ministry’s statement states that the action will also “weaken all parties’ confidence in the US capital market.”
The ministry did not provide details on what the countermeasures might be.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| CHA | CHINA TELECOM | 28.34 | +2.30 | + 8.83% |
| CHL | CHINA MOBILE LTD. | 29.34 | +2.46 | + 9.15% |
| CHU | CHINA UNICOM LTD. | 6.15 | +0.65 | + 11.82% |
China Telecom Corporation Ltd., China Mobile Ltd. and China Unicom Ltd. closed higher on Tuesday.
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Under Trump, the U.S. has tightened economic sanctions and travel bans on Chinese companies, government officials and members of the Communist Party, especially in Trump’s last few weeks in office.
In December, the US announced plans to limit visas for members of the Chinese Communist Party and their family members to one month, instead of ten years.
Chinese technology giant Huawei has been shut down outside the US market and the US has pushed other countries to follow suit, albeit with mixed results.
Associated Press contributed to this report