Wall Street banks to delist derivative products linked to China Telecom, China Mobile and China Unicom in Hong Kong to comply with US sanctions

The delisted derivatives represent about 4 per cent of over 12,000 derivative products in Hong Kong

New York Stock Exchange will delist China Telecom, China Mobile and China Unicom to comply with an executive order

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Wall Street banks will delist derivatives linked to China Telecom stock in Hong Kong among others. Photo: Bloomberg

Published: 9:50am, 11 Jan 2021Updated: 4:44pm, 24 Feb 2021

Goldman Sachs, Morgan Stanley and JPMorgan said they would delist 484 warrants and other derivative products linked to China Telecom, China Mobile and China Unicom stocks in Hong Kong later this month to comply with US sanctions on the three mainland telecom companies.

The Wall Street banks will buy back the products from investors until January 22, according to stock exchange filings on Sunday.

The delistings are unlikely to disrupt markets as they represent only about 4 per cent of more than 12,000 derivative products listed in Hong Kong.

The Wall Street banks are following the New York Stock Exchange that said it would delist the US-traded shares of the three firms from Monday to comply with an executive order signed by outgoing President Donald Trump. The order bans American investors from owning or trading in the stocks of companies said by the US government to be owned or controlled by the Chinese military.

Hong Kong’s market watchdogs do not expect the delistings to cause market disruption. Photo: Sam Tsang

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