The New York Stock Exchange said on Monday it will not delist China’s three major telecommunication companies, an abrupt reversal of a decision made last week which sank the firms’ share prices.
Details: The NYSE said in a statement on Monday that it “no longer intends to move forward with the delisting action” involving China Telecom, China Mobile, and China Unicom Hong Kong after “consultation with relevant regulatory authorities.”
- The bourse said Thursday it would delist the three Chinese state-owned firms on Jan. 7, citing an executive order signed by US President Donald Trump in November. The order bans transactions in securities “designed to provide investment exposure to such securities, of any Communist Chinese military company” by any person in the US. The order included 31 entities that were deemed to be such companies, including the three telecommunication firms.
- “At this time, the Issuers will continue to be listed and traded on the NYSE. NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status,” the exchange said on Monday.
- Shares of the three companies rallied on the news of the reversal. Hong Kong-listed shares of China Mobile surged 5.5% while China Telecom was up 5.7% and China Unicom jumped 6.7% on Tuesday morning.