The New York Stock Exchange (NYSE) announced Wednesday that it will be delisting three Chinese telecommunication companies, reversing course after backing away earlier in the week from a previously announced delisting. The NYSE will delist China Telecom, China Mobile and China Unicom, all of which were targeted by an executive order signed by US President Donald Trump in November.
In its initial announcement, the NYSE stated that it would delist the companies on December 31 in order to comply with the executive order but reversed its decision four days later. The reversal was because it was unclear if the three telecommunication companies were covered by the order. The NYSE’s final decision follows guidance provided by the Department of Treasury’s Office to the NYSE on January, 6 which specifically named the three telecommunication companies as prohibited.
The executive order required investors to pull out of Chinese investments that posed a threat to the US national security due to their close links with the Chinese government. As such, the order bans trading in the prohibited companies beginning January 11. If President-elect Joe Biden chooses to leave the order in place, the US investors will be required to sell their shares in the prohibited companies by November 11.
If more Chinese companies are added to the prohibited list, US investors will have 60 days from that date to divest.