NYSE says it will delist three Chinese companies, China Mobile, China Telecom and China Unicom, on January 7 to comply with a US EO imposing restrictions
That sequence matters because it makes the exchange—not only the three carriers—the operational point where U.S. restrictions are translated into market access.
First-order effects
China Mobile, China Telecom, and China Unicom face removal from NYSE trading under the exchange's stated January 7 timetable.
NYSE must apply the executive order to listed securities while its public position is under immediate scrutiny.
Second-order effects
The subsequent withdrawal and reinstatement of the plan force investors and intermediaries following the three carriers to manage changing exchange-status guidance rather than a settled delisting process.
NYSE's reversals put pressure on the exchange to align its compliance decisions with the U.S. administration's interpretation of the order.
Third-order effects
If exchange implementation of U.S. restrictions continues to be revised in public, access to U.S. listings for named Chinese companies will depend increasingly on regulatory interpretation as well as exchange rules.
The episode points toward exchanges becoming active enforcement nodes for cross-border restrictions, with policy clarity determining how predictable that role is.
The trend: U.S.-China restrictions are increasingly being expressed through the infrastructure of public markets, making exchanges central to their enforcement.
The three companies have separate listings in Hong Kong. All generate the entirety of their revenue in China and have no meaningful presence in the U.S. except for their listings there. https://www.bloombergquint.com/ ...
Excellent news. Chinese companies tied to the Chinese Communist Party and those that refuse to follow US accounting & auditing standards should be barred from accessing US capital markets. https://twitter.com/...
2020 ain't over til it's over: The New York Stock Exchange said it will delist three Chinese companies: China Mobile, China Telecom and China Unicom https://www.bloomberg.com/... via @business
We have been pushing to protect Americans from the dangers posed by #China investments. Removing Chinese telecom companies from U.S. exchanges is a good start but we still need to pass my American Financial Markets Integrity and Security Act. https://www.wsj.com/...
Many Chinese companies listed on major indices are involved in both civilian and military production. Some produce technologies for the surveillance of civilians and repression of human rights. Institutional investors and endowment managers must take note. https://www.wsj.com/...
New York Stock Exchange will delist China's main telecommunication carriers following US government order barring Americans from investing in firms it says help the Chinese military They are: China Mobile, China Telecom, China Unicom https://www.wsj.com/...
I guess if the @AppStore can be compelled to remove apps for geopolitical reasons, the @NYSE can remove companies for similar reasons. https://www.bloomberg.com/...