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NYSE changes course again, to delist three Chinese telcos

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The New York Stock Exchange said Wednesday it will stick to the original plan to delist three Chinese state-owned telecommunications companies after an earlier reversal of the decision that caused much confusion.

Details: Trading in the securities of China Mobile, China Telecom, and China Unicom Hong Kong on the NYSE will be suspended at 4 p.m. on Jan. 11 local time, the bourse said in a statement Wednesday.

  • The NYSE said the decision was based on new guidance received from the US Department of Treasury’s Office of Foreign Assets Control on Tuesday.
  • The three Chinese companies have a right to a review of the decision, the NYSE said.

Context: The second twist of the plot came a day after the US Treasury Secretary Steve Mnuchin reportedly disagreed with the NYSE’s earlier reversal.

  • The bourse on Dec. 31 said it would delist the three Chinese companies on Jan. 7, citing an executive order signed by US President Donald Trump which bans American investment in companies deemed to be owned or controlled by the Chinese military, including the three telcos.
  • On Monday, the NYSE said it would not delist the three firms after “consultation with relevant regulatory authorities.”