There has been a U-Turn for the case where the New York Stock Exchange was to delist three Chinese Telco Giants from January 2021. The New York Stock Exchange has just announced that it will not be proceeding with the delisting anymore. The New York Stock Exchange (NYSE) also announced that as of now, it has no plans of changing its decision.
The New York Stock Exchange (NYSE) revealed that ever since the order had been passed, it was not supporting the decision. Therefore, it was constantly in touch with the senior regulatory authorities in regards to the delisting of the three Chinese telco giants.
The New York Stock Exchange (NYSE) has confirmed that it had been consulting the issue with the relevant regulatory authorities. After going through the consultation, they have decided to not proceed with the de-listing process. The New York Stock Exchange (NYSE) also confirmed that it was in touch with the Foreign Assets Control Office in regard to regulatory guidance.
Right after the announcement of the NYSE pulling from the deal, the share values of all three companies have regained their position. As per shares reports from the Hong Kong stock exchange, the investors for the three telco giants rallied right after NYSE’s latest announcement.
The names of the three Chinese Telco giants are China Mobile, China Unicom, and China Telecom.
It was just last week on December 31, 2020, when the New York Stock Exchange (NYSE) had made the initial announcement. It announced that as per the ruling from the former U.S. President ‘Donald Trump’, it was going to delist the depositary shares of the Chinese telco giants from its index.
When the executive order was signed by ‘Donald Trump back in November for the delisting of the Chinese telco giants, the NYSE was fully compliant with it. However, the idea of banning foreign companies on the basis that they might be involved in information sharing activities with the Chinese military did not seem right.
The executive order was passed not only for the NYSE but was also imposed on other major stock index giants. Some of the most prominent stock index giants include FTSE Russell, MSCI, and S&P Dow Jones. Apart from these major stock index giants, the most popular online trading application ‘Robinhood’ was also issued with the order.
All of these stock trading entities have already taken the necessary steps to comply with the executive order and delist the telco giants.
The Chinese Securities and Regulatory Commission also commented on the actions that had been taken by Donald Trump’s administration in the past few months. The commission stated that the United States administration passed the executive order not from the business perspective but for political purposes.