NYSE tipped for another China listing u-turn - Mobile World Live

NYSE tipped for another China listing u-turn

06 JAN 2021

The New York Stock Exchange (NYSE) could reportedly again flip on a decision to allow China Mobile, China Telecom and China Unicom to remain listed, marking a second u-turn on the issue due to confusion over US government policies.

Reuters reported the NYSE is reconsidering its plan to allow the companies to continue to trade, after reversing a decision to delist the trio on 4 January.

On 31 December 2020, NYSE detailed plans to halt trading of the securities of China’s three largest operators by 11 January, but dropped the move following consultation with regulatory authorities.

It initially took the decision against the Chinese companies to comply with an executive order issued by President Donald Trump in November 2020, blocking US investment in companies the Department of Defence claimed are owned or controlled by the Chinese military.

However, there was ambiguity over whether the three companies were covered by the order, which led to NYSE reversing its decision.

In the latest twist to the saga, Reuters reported it could still go ahead with the delisting, if the companies are in fact deemed to be subject to the order.

A source told Reuters US Treasury Secretary Steven Mnuchin had informed NYSE president Stacey Cunningham that he disagreed with the decision to reverse its decision to delist.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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