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NYSE reverses course again, excluding three Chinese telecommunications stocks

China Telecom will be delisted from the New York Stock Exchange.


Photo:

Qilai Shen / Bloomberg News

The New York Stock Exchange has pushed ahead with delisting three Chinese telecommunications companies subject to executive order from President Trump, reversing the course after NYSE said it would not delist earlier this week. I will.

The New York Stock Exchange said Wednesday about trading China Mobile’s US-listed stocks Co., Ltd.

CHL -2.73%

, China Telecom Co., Ltd.

CHA -3.63%

And China Unicom (Hong Kong) Co., Ltd.

CHU -2.20%

It will stop at 4am EST on Monday. Mr. Trump’s order seeks to ban the trading of securities of companies that the government claims to have a relationship with the Chinese military.

The NYSE said the latest actions were taken after receiving “new concrete guidance” from the Office of Foreign Assets Control of the Treasury on Tuesday. The guidance stated that three American Depositary Receipts were subject to Mr. Trump’s order. The NYSE statement also said the two companies could appeal the delisting decision to the exchange.

Wednesday’s reversal could raise further questions about the handling of the three Chinese stock exchanges. Last week, the New York Stock Exchange delisted three companies to comply with Mr. Trump’s orders, reversed the course on Monday, and said it was not delisted. Those familiar with the matter said the New York Stock Exchange retreated due to ambiguity as to whether the three companies were subject to the order. New guidance from the Treasury seems to have solved the problem.

The retreat of the New York Stock Exchange has elicited criticism from hard-line supporters of the Trump administration and Beijing. Treasury Secretary Stephen Munewchin called Stacey Cunningham, President of the New York Stock Exchange, to oppose the New York Stock Exchange’s flip-flops.

Write to Alexander Osipovich (alexander.osipovich@dowjones.com)

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NYSE reverses course again, excluding three Chinese telecommunications stocks

Source link NYSE reverses course again, excluding three Chinese telecommunications stocks

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