Shares in Chinese companies are no longer allowed to be traded.
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(Photo: AP)
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The New York Stock Exchange has initiated the delisting of three Chinese companies with state participation. As of January 11, the shares of the telecommunications companies China Telecom, China Mobile and China Unicorn can no longer be traded on the New York Stock Exchange (NYSE), the exchange operator announced on Friday.
According to the New York Stock Exchange the three companies have too close ties to the Chinese military. They are therefore “no longer suitable”. The Chinese companies initially did not comment. At the same time, they are also listed on the Hong Kong stock exchange and generate only a very small part of their sales in the USA.
Nevertheless, this measure has a symbolic effect beyond Wall Street. In November, US President Donald Trump banned Americans from investing in Chinese companies that support the military there. To do this, he presented a list of companies whose stock ownership is prohibited for US persons or companies. This included, for example, aviation groups, tech companies and even companies from the telecommunications sector.
Trump justifies the ban by saying that these companies offer the Chinese military access to new technologies, which in turn would enable China to behave more aggressively. The People’s Republic is increasingly using the American chapter to advance the development and modernization of its military, secret service and other security apparatuses, it said in the relevant decree.
Trump had taken strict action against Chinese companies several times in the past. For example, the government imposed a chip embargo on the successful technology group and smartphone provider Huawei. The risk that China could launch cyber attacks via Huawei technology in critical infrastructures such as the ultra-fast 5G network is too great.
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