The New York Stock Exchange has changed its mind about booting three Chinese stocks due to an executive order by President Donald Trump.
America’s preeminent exchange had initially said it would delist China Telecom, China Mobile, and China Unicom Hong Kong by Monday. The executive order prohibits Americans from investing in companies believed to have ties to the Chinese military.
But in a new statement about its decision to delist the companies, the stock exchange did a 180: [In] light of further consultation with relevant regulatory authorities in connection with Office of Foreign Assets Control FAQ 857 . . . NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status.”
When the original decision was announced, Beijing vowed a response, although it was unclear what form that would take. “China opposes the Americans from abusing national security by listing Chinese companies into the so-called ‘Communist China Military Companies’ list and will take the necessary countermeasures to resolutely safeguard the legitimate rights and interests of Chinese companies,” the Chinese Commerce Ministry told the Associated Press.
The executive order signed on November 12 targets companies that are compelled by the People’s Republic of China to help support its own “military-industrial complex.”
“[T]hose companies raise capital by selling securities to United States investors that trade on public exchanges both here and abroad, lobbying United States index providers and funds to include these securities in market offerings, and engaging in other acts to ensure access to United States capital,” the order reads. “In that way, the PRC exploits United States investors to finance the development and modernization of its military.”
This post and headline have been updated to reflect the reversal by NYSE.