NYSE Drops Plans to Delist Three Chinese Telecom Giants

The New York Stock Exchange (NYSE) announced it no longer plans to delist three Chinese telecom titans.

In a statement issued yesterday, the company said it “no longer intends to move forward with the delisting action” after making “further consultation with relevant regulatory authorities”. The three companies in question are China Telecom (NYSE: CHA), China Mobile (NYSE: CHL), and China Unicom (NYSE: CHU).

The NYSE decision represents a u-turn given that it said a few days ago that it had begun delisting proceedings for three telecom companies. Previously, it said it will comply with an executive order that President Donald Trump signed in November.

The order, which is set to take effect Monday, bans American companies and individuals from investing in companies that are allegedly connected to the Chinese military. Major stock indexes, such as MSCI, S&P Dow Jones Indices, and FTSE Russell, have already taken steps to comply with the order.

"We hope the United States will respect the market and rule of law," a spokesperson of the Ministry of Foreign Affairs of China Hua Chunying said in response to the NYSE u-turn.

Similarly, the spokesperson for the China Securities Regulatory Commission (CSRC) said that the executive order has a political background.

“The executive order, which is based on political purposes, have entirely ignored the actual situations of relevant companies and the legitimate rights of the global investors, and severely damaged market rule and order,” it is said in the statement issued yesterday.

As expected, shares of China Telecom, China Mobile and China Unicom moved higher in pre-market trading. China Mobile stock price is trading 10% higher while Unicom share price is up nearly 14% in pre-market trading hours Tuesday.

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