Sources: after NYSE said it wouldn't delist China Mobile, China Telecom, and China Unicom, it now mulls reverting to original plan following Mnuchin criticism
The subsequent coverage says NYSE returned to the original delisting plan, making this report the pivot between two conflicting exchange decisions rather than a routine listing action.
First-order effects
China Mobile, China Telecom, and China Unicom again face the prospect of losing their NYSE listings after NYSE's brief decision not to delist them.
NYSE must reverse its just-announced position and align its handling of the three companies with the executive order after Mnuchin's criticism.
Second-order effects
The rapid sequence—from the initial Jan. 7 delisting announcement to a withdrawal and renewed action—leaves investors and the affected companies operating against an unstable timetable for the listings.
The episode makes the exchange's interpretation of U.S. restrictions a White House-sensitive decision, rather than an issue NYSE can settle solely through its own review.
Third-order effects
If exchanges face direct pressure over securities tied to U.S. restrictions, listing policy for Chinese issuers becomes more closely bound to the implementation of national-policy directives.
The conflicting NYSE announcements point to a more politicized boundary between exchange governance and U.S.-China financial restrictions.
The trend: U.S.-China financial restrictions are increasingly shaping exchange-listing decisions, with government enforcement pressure narrowing exchanges' room to interpret them independently.
The plot thickens on part of what's moving stocks today — @stevenmnuchin1 told @NYSE that he disagrees w/ Exchange's reversal on Chinese Stock delisting, report Rob Schmidt and @SalehaMohsin via @business https://www.bloomberg.com/...
The US is ruining its credibility with inconsistent policies like this: The NYSE said it reversed its decision to delist the Chinese telecom companies after consulting with regulatory authorities https://www.wsj.com/... via @WSJ
SHORT THREAD The dumpster fire at the NYSE and Treasury is causing confusion, so I'll do my best to lend a little perspective and hopefully clear things up a bit. The crux of the issue seems to be confusion over taxonomy. https://www.bloomberg.com/... via @markets
New York Stock Exchange to three Chinese telecommunications operators: I know I told you to get lost a few days ago, but you can stay now. @keping @benottoWSJ https://www.wsj.com/...
Not a good PR day for @NYSE NYSE de-lists 3 Chinese companies w/ links to military due to Trump admin pressure - 1/4/21 NYSE re-thinks de-listing - as I assume it hurts Asia listing biz 1/5 am Trump admin chastises NYSE 1/5 ~ noon NYSE - re-thinks re-listing 1/5 4:30pm https://tw…
NYSE's surprise decision to spare Chinese telecoms from being delisted caught officials at White House, Treasury, State off guard, sources told @nwadhams @SalehaMohsin @benbain and me. Lots of phone calls today among officials to figure out what happened. https://www.bloomberg.co…
In the meantime, the NYSE's whipsaw actions regarding Chinese Telcos highlights how volatile U.S. policy toward China is right now. https://www.bloomberg.com/...
ayfkm. China Mobile is a $100b company! And NYSE is like “you get delisted!” “Wait hang on, we call take-backsies, you *don't* get delisted!” https://ir.theice.com/...
The New York Stock Exchange said it no longer plans to delist China's big three telecommunications companies. Shares of China Mobile, China Telecom and Unicom rallied on the latest development, rising more than 6% in Hong Kong trading. https://www.bloomberg.com/...