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Summary
- NYSE has now confirmed that the trading on three Chinese telecommunication companies will be suspended from Monday onwards.
- The recent move by the exchange comes after Treasury’s Office of Foreign Assets Control engaged with NYSE.
For the second time in less than a week, the New York Stock Exchange (NYSE) has said it would delist the NYSE-listed shares of three Chinese telecommunications companies.
Source: Pixabay
The exchange had reversed its original decision after engaging with ‘relevant regulatory authorities’. On New Year’s Eve, the exchange had first reported its intention to delist three leading Chinese telecommunication companies.
The pack included China Telecom, China Mobile, and China Unicom. In an executive order in November, the US Government had alleged that the companies have Chinese military influence.
The companies were part of a long list of Chinese companies alleged to have Chinese military influence by the Department of Defence.
Source © Kalkine Group 2020
As per reports, Treasury Secretary Steven Mnuchin disagreed with the confusion propelled by the stock exchange.
The stock exchange acknowledged that Treasury’s arm Office of Foreign Assets Control had asked US nationals not to engage with the three companies.
Now the exchange has confirmed that trading shares of three companies will be suspended by next Monday. In 2020, President Donald Trump’s administration had taken meaningful steps to curb the growing threat of Chinese companies on US national security.
The steps include banning of certain applications run by Chinese companies. In December, the US Government also passed a bill to increase foreign companies' audit requirements listed on US exchanges.
