The Stock Exchange (NYSE) will delist three major Chinese telcos, as the executive order issued on November 12 by outgoing USDonald Trump will take effect on January 11. The three Chinese listed companies affected by this move are China Telecom, China Mobile and China Unicom Hong Kong. In addition to these three Chinese telcos, the list also includes other major Chinese companies such as , HuaweiHikvision, Inspur, Panda Electronics and Semiconductor Manufacturing International Corporation.
More specifically, Trump issued an executive order that prohibited any commercial and investment activities concerning companies that have previously been considered communist Chinese military companies by the US Department of Defense.
Trump's order would also prohibit transactions in companies 60 days after such a label is placed on them. In addition, Trump stated the following in the executive order:
«The People's Republic of China exploits the capital of the United States to strengthen its army, which allows Beijing to threaten the US and its overseas forces, as well as develop advanced conventional weapons, and malicious activities that support cyberspace against the United States and its citizens. Through the national strategy of Military-Civil Fusion, the PRC increases the size of the country's military-industrial complex, forcing non-military Chinese companies to support military activities and intelligence services. These companies, although they appear private and political, directly support the military mechanisms, intelligence and security services of the PRC, and help in their development and modernization. At the same time, these companies gather capital by selling securities to United States investors who conduct transactions on public stock exchanges both here and abroad. To protect the country and the American people, I declare a national emergency regarding this threat.»
China, for its part , said that the outgoing President's order to delist the three Chinese telcos from the NYSE was politically motivated. At the same time, it stressed that the US was violating market rules with this move. Thus, China urges the US to show the required respect in order to preserve the "order of the global financial market."
The China Securities Regulatory Commission (CSRC) said on January 3 that the exclusion of Chinese telcos from the NYSE “ignores” the “legitimate rights” of global investors and “seriously disrupts” market order.
Furthermore, the news agency “China Daily” reported that the three Chinese companies had been listed on the NYSE for over 20 years. Also, the companies had complied with the rules and regulations in accordance with the US mobile securities market.
The Committee added that some American politicians have tried to suppress foreign companies listed in the US with the «cost of damage» of the global position of the American capital market, characterizing these moves as arbitrary and unreasonable.
The Commission noted, however, that the ban would have a limited impact on the operations and growth of the three Chinese telcos, given their large user base, well-established operations and influence in the global telecommunications industry.
The Commission also stressed that it would support the three companies in safeguarding their rights and interests. Specifically, it said the following: "We hope that the US will respect the market and the rule of law and do more to protect the order of the global financial market, safeguard the legitimate rights and interests of investors, and promote the stable development of the global economy."
As reported by ZDNet, an official from the China Banking and Insurance Regulatory Commission (CBIRC) also called for the stabilization of China-US relations. Specifically, he noted the following: “We hope that the US government will uphold the spirit of non-conflict, non-confrontation, mutual respect and win-win cooperation, promote the healthy development of China-US relations, and maintain international financial market stability with us.”
