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New York Stock Exchange’s decision to continue trading in shares of Chinese telecom operators may be reviewed
The management of the New York Stock Exchange has clearly not decided whether the new decree of Donald Trump applies to the securities of the three largest telecom operators in China, whose shares are traded in the United States through depositary receipts. After canceling the delisting this week, the management of the exchange still doubts the correctness of such a decision.
Image source: Reuters
The specifics of the conditions in which these decisions were made are described by the Reuters resource. According to the source, the management of the exchange was embarrassed by the ambiguity of the wording of the corresponding decree of the President of the United States, and therefore decided not to rush with the delisting of Chinese issuers, although initially it expressed its readiness to exclude shares of China Telecom, China Mobile and China Unicom from the quotation list. If, in the course of consultations with the relevant American departments, the management of the exchange comes to the conclusion that the listed Chinese companies fall under the presidential decree, then the delisting will be implemented this month.
According to unofficial reports, US Treasury Secretary Steven Mnuchin called New York Stock Exchange President Stacy Cunningham to express his dissatisfaction with the decision to stop delisting Chinese issuers on January 11. Senator Marco Rubio, on the other hand, expressed concern about rumors about the influence of US Treasury officials on the exchange’s refusal to delist. Surrounded by the owners of this exchange, I must say, there are ardent supporters of Donald Trump, so the primary intention to move to delisting could immediately be politically motivated.
The specific situation with the delisting of Chinese telecom operators is part of a long-term initiative by the American authorities to close access to the US capital market for those Chinese companies that will not be able to bring their audit procedures in line with the requirements of US law within three years. According to experts, irreparable contradictions in the laws of the PRC and the United States will not allow Chinese issuers to stay on American stock exchanges, so their withdrawal from this market is only a matter of time.