FX.co ★ NYSE to delist China’s telcos

The United States continues to make life a nightmare for Chinese businesses. Thus, China’s three telecommunication companies became a new target for American sanctions. An order that prohibits US investors from investing in companies that the US government considers supporters of China’s military services delivered a severe blow to Chinese telcos.

The New York Stock Exchange (NYSE) was one of the first to respond to the White House executive order. It has already initiated delisting proceedings to remove China Telecom Corp Ltd, China Mobile Ltd, and China Unicom (Hong Kong) Ltd, the world's largest mobile network operators by the total number of subscribers. Notably, the ban is supposed to go into effect on January 11. However, numerous stocks have already decided to slowly get rid of Chinese blacklisted companies.

Shortly before the end of his presidential term, Donald Trump signed an executive order that prohibits American individuals and legal entities from conducting any transactions with the securities of Chinese companies that have links to the Chinese military. At the same time, the ban is symbolic as the presence of China’s telecom operators in the US is minimal. All of them are mainly represented in the Stock Exchange of Hong Kong.

Nevertheless, Washington may impose tougher sanctions on Chinese companies. In fact, Huawei, the telecom giant, was the first to be accused of cooperating with China’s military services and collecting personal data. Right after that, the US started compiling a list of companies engaged in similar activities.