The New York Stock Exchange (NYSE) stated it will delist three Chinese telecom companies after an earlier reversal of the decision.
The NYSE initially revealed it would delist China Mobile, China Telecom and China Unicom recently, following a Trump administration executive order.
It then reversed that decision this week, recommending the order didn’t need it to delist the business.
Now, in a second about-face, the NYSE will delist the business after all.
The second turnaround comes a day after the United States Treasury Secretary Steve Mnuchin apparently raised objections to the NYSE’s earlier reversal.
The exchange pointed out “new particular assistance” from the United States Treasury Department as a factor for reverting to its initial position.
Trading in the securities will be suspended on 11 January, the NYSE stated.
Shares of the three companies have been on a roller rollercoaster trip due to the indecision, falling on the initial statement, increasing on the first turnaround and falling once again on the 2nd.
Shares in all the business fell around 8% in Hong Kong, where they are likewise listed.
” After an extreme pressure campaign from those of us who think we must prioritize the interests of American employees and mom and pop financiers above Beijing and Wall Street, I am delighted that the NYSE chose to reverse their earlier statement,” said Republican Senator Marco Rubio.
Republican Senator Ben Sasse, a member of the Senate Select Committee on Intelligence, likewise agreed with the decision.
” Chinese firms that decline essential transparency requirements and have ties to the Chinese military shouldn’t take advantage of American financial investment,” he said.
NYSE-owner Intercontinental Exchange (ICE) is run by billionaire Jeffrey Sprecher.
His spouse Kelly Loeffler, a Senator from Georgia, lost a run-off election for her seat on Tuesday.
More US-China friction
The current decision comes as the President Trump seeks to cement the United States’s hard line on China in the last weeks of his presidency.
The decision on the Chinese telecoms giants is based on an executive order he checked in November, which bars American financial investments in companies which are allegedly owned or managed by the Chinese armed force.
On Tuesday Mr Trump signed an extra order banning transactions with eight Chinese apps, including Alipay.
The Wall Street Journal has actually reported that the White House is considering an additional restriction on Alibaba and Tencent.
The 3 Telecom business make all of their revenue in China and have no substantial existence in the US
Like lots of other big Chinese business, they have a double listing in the United States and Hong Kong.
There are presently more than 200 Chinese companies listed on United States stock markets with a total market capitalization of $2.2 tn (₤ 1.6 tn).