NYSE to make its second policy reversal in two days to delist Chinese telecoms stocks if US blacklist applies, source says
- Stock exchange intends to comply with executive order banning US investors from buying shares in firms deemed to have ties to the Chinese military, source says
- Order applies to China Mobile, China Telecom, China Unicom and more than 30 other companies and their subsidiaries
The New York Stock Exchange (NYSE) is committed to delisting three Chinese telecommunications companies if their subsidiaries are found to be affected by a US blacklist, according to a person with knowledge of the matter.
The NYSE intends to comply with President Donald Trump’s executive order that bans US investors from buying shares in companies the Defence Department says have ties to the Chinese military, said the person, who asked not to be identified because of the lack of authority to speak publicly on the issue.
Shares of the trio fell in Hong Kong after the NYSE’s second U-turn in two days. Unicom slid 0.4 per cent to HK$4.83, and China Mobile dropped 1.3 per cent to HK$45.50 while China Telecom rose 1.4 per cent to HK$2.19. The trio had surged a day earlier, adding HK$58.7 billion (US$7.56 billion) in value, after the NYSEs first delisting reversal.
A spokeswoman for the New York Stock Exchange declined to comment.