NYSE scraps decision to delist Chinese telecoms companies

by Jonathan Adams

Shares of all three companies surged on the Hong Kong stock market

The New York Stock Exchange (NYSE) has scrapped its decision to delist three Chinese telecoms companies.

The NYSE announced on 31 December that it would delist China Mobile, China Telecom and China Unicom as a result. Now, it has U-turned its decision based on “further consultation” with regulatory authorities.

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 told the BBC. That interpretation has clearly changed and the NYSE has moved quickly to change course.

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.

The three companies earn all of their revenue in China and have no significant presence in the US Like many other large Chinese companies, they have a dual listing in the US and Hong Kong.

There are currently more than 200 Chinese companies listed on US stock markets with a total market capitalization of $2.2tn (£1.6tn). In some cases, however, their share listings have became tangled in ongoing diplomatic and trade friction between the US and China.

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