NYSE Backs Down From Delisting Chinese Companies Following CCP Threats
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The New York Stock Exchange reversed its decision to delist three Chinese tech companies with ties to the Chinese military on Monday night.
The exchange announced on Dec. 31 that it would remove China Telecom, China Mobile, and China Unicom to comply with President Donald Trump's executive order, which banned all investments in Chinese companies that have ties to the Chinese military. The exchange now says it "no longer intends to move forward with the delisting action" after discussions with regulatory authorities.
"At this time, the Issuers will continue to be listed and traded on the NYSE. NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status," the exchange said in a statement.
Shares of the three companies plummeted after the exchange's New Year's Eve announcement, prompting the Chinese government to threaten "necessary countermeasures" to oppose the delisting on Saturday. The companies surged as trading began Tuesday. China Mobile increased by 10 percent, while China Unicom increased by more than 13 percent. Shares of China Telecom also increased by 7 percent in the wake of the exchange's reversal.
