The New York Stock Exchange eventually removes three Chinese telecoms giants from the list, saying the two-day second redemption came after new guidance from the Treasury Department.
The NYSE announced Thursday that it will remove its U.S.-traded shares in China Telecom, China Mobile and China Unicom from the Big Board to comply with an enforcement order signed by President Donald Trump. The purpose of the order was to prevent U.S. companies and individuals from investing in companies in which the administration allegedly provided assistance to the Chinese military.
The exchange on Monday changed that decision, causing a lot of confusion. Finance Minister Steven Mnuchin told the exchange that he did not agree with the reversal, said Eamon Javers, a senior CNBC official.
According to the NYSE, the recent withdrawal was due to new guidance from the Treasury Department’s Office of Foreign Asset Management that people in the U.S. will not be able to make certain transactions with the three companies starting next Monday. Trading in the three securities will be suspended on Monday at 4 p.m., the stock exchange said.
Shares of China Telecom fell 1.7% in early trading on Wednesday, while China Mobile rose roughly 1% and China Unicom rose about 0.8%.
Chinese officials criticized the NYSE’s original decision, a spokesman for the Chinese Securities Regulatory Commission said on Monday that the enforcement order “completely disregarded the actual situation of the companies involved and the legal rights of global investors and seriously violated market rules and regulations.” “
Trump issued the order in November as part of a series of actions against Chinese companies.
In August, the president launched a legal battle for the TikTok community site against parent company China-based ByteDance and Tencent. Several U.S. companies, including Oracle and Walmart, have held talks to acquire a partial stake in the video-sharing app.
Trump signed a bill in December that would force the delisting of Chinese stocks that don’t comply with U.S. auditing standards, and the administration instructed the Federal Retirement Savings Investment Board to avoid investing in Chinese companies in May.
–CNBC with a report by Christine Wang.