The NYSE will delist three main Chinese language telecommunications corporations and reverse the choice once more

The New York Stock Exchange will eventually remove three Chinese telecommunications giants from the list. The second reversal within two days came after new instructions from the Treasury.

The NYSE announced Thursday that it would remove US-traded shares of China Telecom, China Mobile and China Unicom from the Big Board to comply with an executive order signed by President Donald Trump. The order was intended to prevent American companies and individuals from investing in companies that the government claimed to have helped the Chinese military.

The exchange reversed that decision on Monday and created a lot of confusion. Treasury Secretary Steven Mnuchin told the exchange that he disagreed with the reversal, a senior administration official told CNBC’s Eamon Javers.

The NYSE said the latest reversal was due to new Treasury Department guidelines on foreign wealth control that said people in the U.S. would no longer be able to conduct certain transactions with the three companies as of next Monday. Trading in the three securities will cease on Monday at 4:00 p.m. CET, the exchange announced.

China Telecom’s shares fell 1.7% on the early day of trading, while China Mobile fell around 1% and China Unicom fell around 0.8%.

Chinese officials criticized the NYSE’s original decision. A spokesman for the China Securities Regulatory Commission said Monday that the executive order “completely ignored the real situations of relevant companies and the legitimate rights of global investors, and severely damaged market rules and regulations.” “

Trump issued the order in November as part of a series of measures against Chinese companies.

In August, the president launched a legal battle over the social media site TikTok with a similar mandate directed at parent company ByteDance in China and Tencent. Several US companies, including Oracle and Walmart, discussed to participate in part in the video sharing app.

Trump signed a bill in December to force the delisting of Chinese stocks that did not meet US auditing standards, and the administration ordered the Federal Retirement Thrift Investment Board not to avoid investing in Chinese companies in May.

– With reporting by Christine Wang of CNBC.

Comments are closed.