LAST UPDATED: Jan. 3, 2021, 7:18 p.m.
New Delhi (Anish Yande): Three major Chinese telecom companies would be removed from the New York stock exchange. The Trump administration had deemed the removal of the firms, citing ties of the firms with the Chinese military. In response, China has warned of ‘necessary measures’ over the delisting.
Three Chinese telecom stocks delisted:
The telecom stocks China Mobile Communications, China Telecommunications Corp, and China Unicom (Hong Kong) Limited would be delisted from the New York Stock Exchange. US President Donald Trump had signed the order to delist the stocks from NYSE in November.
The order issued by President Trump restricts US citizens and companies from trading and owning shares of 31 Chinese companies. Chinese companies such as China Railway Construction Corp and Hikvision have been delisted as well.
The delisting of the companies is set to be finalized on January 11th.
Trump has focused on Chinese threats to the United States. The US President hailed the ‘America First’ motto during the trade and sanction war against China. The Chinese smartphone and technology manufacturer was restricted by the Trump Administration previously.
Following the announcement by NYSE, several indices in the U.S stock market, such as Nasdaq and S&P Dow Jones Indices have removed Chinese firms from their listings.
Chinese spokesperson responds to the delisting:
A spokesperson from China’s Ministry of Commerce stated that the delisting of the companies is inconsistent according to market rules. The move would weaken the confidence of all parties in the US markets.
The action by the US to delist the companies harms the rights and interests of Chinese enterprises, according to the Chinese ministry. The ministry also warned of ‘necessary measures’ to secure Chinese rights and interests.
Meanwhile, the National Security Advisor Robert O’Brien justified the delisting order by stating that it would prevent Americans from providing passive capital to Chinese companies. The capital improves China’s army and spy agencies, O’Brien stated.
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