In sudden reversal, NYSE says won't delist three Chinese telcos
05 January, 2021
The New York Stock Exchange said on Monday (Jan 4) it no more intends to delist three Chinese telecom giants that contain been targeted by US President Donald Trump's outgoing administration, in a shock reversal of an announcement made only last week.
The exchange said in a statement it had made a decision "in light of further consultation with relevant regulatory authorities".
It had said on Thursday it would delist China Cell, China Telecom and China Unicom Hong Kong following US government movements to block investment found in 35 companies deemed to come to be owned or manipulated by the Chinese army.
Hong Kong-listed shares in the firms surged in the announcement, with China Unicom up 6.7 %, while China Mobile and China Telecom each gained 5 %.
"(It) shows how little light there is for the reason that set of regulatory guidance up to now, especially around enough time the US is changing administrations," explained Tariq Dennison, controlling director at GFM Asset Control in Hong Kong.
Dennison's funds keep China Mobile shares in both Hong Kong and NY, but he possesses largely unwound NY positions just lately, partly to find US customers investments that happen to be less subjected to Sino-US tensions that will probably persist.
"I don't believe Biden will magically de-escalate anything," Dennison said.
"He is normally inheriting a posture of tension in US-China relations where he will probably not desire his first 100 times to be remembered for quick concessions."
China Unicom and China Telecom said found in statements that that they had taken notice of the development and would release data relative to regulations, adding that shareholders should focus on investment risks.
A good representative for China Portable was not immediately designed for comment.
A good representative for the NYSE declined to comment beyond the bourse's statement.
China's foreign ministry had named the organized delisting of the three corporations "unwise" and denounced what it said had been "random, arbitrary and uncertain" guidelines.
The NYSE's most recent announcement briefly boosted an already rising Chinese yuan to a fresh 30-month high on hopes it might herald some kind of easing in geopolitical tension.
Source: www.channelnewsasia.com
TAG(s):