NYSE to delist 3 Chinese telecom companies to comply with US executive order

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Amid rising issues of safety, the New York Stock Exchange (NYSE) mentioned on Friday that it’s going to delist three Chinese companies to comply with a US executive order that imposed restrictions on companies that have been recognized as affiliated with the Chinese army, reported South China Morning Post (SCMP).

The three companies — China Mobile, China Telecom and China Unicom Hong Kong — will probably be delisted between January 7 and January 11 and proceedings to delist them have began, in accordance to an announcement by the NYSE.

These companies having separate listings in Hong Kong generate all of the income for China with none significant presence within the US. Thus utilizing the US soil to generate investments in China – an abusive enterprise follow. These companies are concerned in civilian and army manufacturing with cash from US buyers.

Earlier, US President Donald Trump on November 12 had signed an executive order that prohibits Americans from investing in 31 companies.

The order prohibited US buyers from shopping for and promoting shares in a listing of Chinese companies designated by the Pentagon as having army ties.

“The Chinese Communist Party’s threat to American national security extends into our financial markets and impacts American investors,” the State Department mentioned in a factual report.

“Many major stock and bond indices developed by index providers like MSCI and FTSE include malign People’s Republic of China (PRC) companies, listed on the Department of Commerce Entity List and/or the Department of Defense List of Communist Chinese military companies,” it added.

The executive order has resulted in a sequence of companies being faraway from indexes compiled by MSCI, S&P Dow Jones Global Indices and FTSE Russell, reported SCMP.

Following the steps of the US and Japan, the Taiwanese Economic Affairs Ministry on Wednesday too tightened management over Chinese investments due to nationwide safety issues.

Based on new rules that got here into impact from Wednesday, Chinese military-owned companies and Chinese Communist Party-owned companies have been banned from investing in Taiwan.

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