The New York Stock Exchange (NYSE) said on Friday it is in the process to delist three Chinese corporations from trading in its exchange.
Name of 3 Companies
- China Mobile Ltd.,
- China Telecom Corp Ltd.,
- China Unicom Hong Kong Ltd.
Reason
The Stock Exchange stated, “We have to comply with a U.S. executive order that imposed restrictions on companies identified as affiliated with the Chinese military.”
Why US imposed restrictions
The U.S. President Donald Trump signed an order in November barring American investments in Chinese firms owned or controlled by the military, in a bid to pressure Beijing over what it views as abusive business practices.
The order prohibited U.S. investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as having military ties.
Date of Suspension
The trading for the above said company will be suspended between January 7 and January 11,2021.
Comment from China
Wang Wenbin, Chinese Foreign Ministry spokesperson, “We firmly oppose the U.S. politicizing economic and trade issues.”
“The U.S. not only harms the legitimate rights and interests of Chinese companies, but also injures the interests of U.S. companies.”
Similar event in past
Companies including e-commerce giants Alibaba Group Holding Ltd. and JD.Com Inc., which already had listings in New York, conducted secondary listings in Hong Kong in the past two years as the trade war between the U.S. and China intensified.
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