The New York Stock Exchange said it would revoke the listing status of three Chinese companies in line with a US executive order to add a group of Chinese companies linked to the Communist Party’s military to its sanctions list. China Telecom Corp. Ltd. (CHA), China Mobile Ltd. (CHL) and China Unicom Hong Kong (CHU) will be suspended from trading on the New York Stock Exchange from Jan. 7 to 11, pending delisting.
The three Chinese companies are also independently listed in Hong Kong and their businesses are mainly derived from China. They have no major investments in the United States and are listed only in the United States, the report said.
U.S. President Donald Trump signed an executive order in November banning the United States from investing in a group of Chinese companies linked to the Communist Party’s military. The order prompted international index companies such as MSCI, S&P Dow Jones International Index and FTSE Russell to remove relevant Chinese stocks from their indices.
Over the past decade, global exchanges including the New York Stock Exchange and Nasdaq have tried to drum up Chinese listings to expand the business of new shares, especially internet-related companies. To cope with competition, The Hong Kong Stock Exchange (00388) has changed its listing rules in recent years to give the green light to Chinese companies with different rights and second listings for the same shares. Alibaba (09988) and JD (09618) went ahead with the second listing.
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