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
For China Mobile, China Telecom, and China Unicom, the immediate issue is access to their NYSE listings; for NYSE, it is the need to execute a politically scrutinized restrictions policy consistently.
First-order effects
China Mobile, China Telecom, and China Unicom face removal from NYSE on January 7 under the exchange’s stated reading of the U.S. executive order.
NYSE must halt trading in the three companies’ listed securities while managing a compliance decision that it later reaffirmed in a reversal.
Second-order effects
The exchange’s reversal cycle puts other issuers potentially covered by the order on notice that listing eligibility can turn on evolving compliance interpretation rather than routine exchange criteria.
Investors and intermediaries holding the three NYSE-listed securities must adjust to the loss of that venue, while the companies’ U.S. market access narrows.
Third-order effects
The episode points to U.S. exchange access becoming an instrument of executive-order enforcement, tying market infrastructure more directly to U.S.-China policy disputes.
If exchanges face continuing political pressure over such orders, compliance judgments may become less predictable for foreign issuers and their investors.
The trend: U.S.-China restrictions are increasingly being translated from policy directives into decisions about which foreign companies can retain access to U.S. market infrastructure.
I'm glad the NYSE is taking this important measure to remove companies that are tied to the Chinese military. These companies do not follow American laws and regulations and are used as tools to grow China's influence around the world. https://twitter.com/...
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/...
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/...
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/...
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