Chinese New Year New York Stock Exchange chasing 3 Dragon companies
Date 01 Jan. 2021 time 16:31
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The New York Stock Exchange (NYSE) will delist the Chinese telecoms giant on an order by the US government.
Bloomberg reported that the New York Stock Exchange said it would delist three Chinese companies in order to comply with an order from the US government that imposes restrictions on companies identified as affiliated with the Chinese military from listing on the US stock exchange.
According to the exchange statement, China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. will be suspended from trading between Jan. 7 and Jan. 11, and after that, a delisting process will be conducted.
These 3 Chinese companies generate all their income in China and are also registered in the Hong Kong market. It does not hold a significant position to the US economy, except it is listed on the US stock market. The shares of these companies are also traded on the New York Stock Exchange slightly compared to the Hong Kong Stock Exchange. This makes the removal by the NYSE more a symbolic attack amid the growing geopolitical conflict between the United States and China.
President Donald U.S. Trump signed the order last November. U.S. investors are prohibited from buying and selling shares on a list of Chinese companies that the US Department of Defense says has military ties. Most of these are Chinese companies owned or controlled by the People’s Liberation Army. This is to pressure the Chinese government, claiming it is inappropriate business practice.
The Chinese foreign ministry later accused the United States of “Slandering” China’s military-civilian integration policy And vowed to protect Chinese companies Chinese officials have also threatened to retaliate against the Trump administration with a blacklist of U.S. companies.
Photo by Angela Weiss / AFP
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