Plan to delist Chinese telecoms companies scrapped by the New York Stock Exchange

284

Three Chinese telecoms companies that faced delisting by the New York Stock Exchange have been given a reprieve.

This as news came that the NYSE after further consultations with regulators have reconsidered and decided to scrap its decision.

On 31 December, the NYSE decided that China Mobile, China Telecom and China Unicom were to be delisted.

This came on the heels of a proclamation from President Donald Trump who signed an executive order in November prohibiting American investments in Chinese firms owned or operated by the military.

“I suspect that the NYSE never wanted to delist these stocks in the first place. They acted on guidance regarding the executive order,” Jeffrey Halley, a senior market analyst from Oanda said.

The US exchange had planned to delist all three companies as early as this week.

Shares of all three companies surged on the Hong Kong stock market – where the companies are also listed – bouncing back after from punishing sessions in both New York and Hong Kong.

China Unicom rose by 8.5%, while China Telecom jumped 8% and China Mobile rebounded by 7% on the news.

The NYSE indicated that it might revisit the decision, saying it would continue to evaluate the applicability of Mr Trump’s Executive Order to the three companies and their continued listing status.