NYSE will Not Delist Three Chinese Telecoms After All

Recently, the New York Stock Exchange (NYSE) announced that it would comply with Executive Order 13959 and delist China Mobile Communications, China Telecommunications Corp, and China Unicom (Hong Kong) Limited. Since then, NYSE has decided not to delist them.

On January 4, 2021, NYSE posted news titled: “NYSE Updates Guidance on Delisting Determination for Security of Three Issuers in Relation to Executive Order 13959”. From the news:

In light of further consultation with relevant regulatory authorities in connection with Office of Foreign Assets Control FAQ 857, available here, the New York Stock Exchange LLC (“NYSE”) announced today that NYSE Regulation no longer intends to move forward with the delisting action in relation to three issuers enumerated below (the “Issuers”) which was announced on December 31, 2020.

At this time, the Issuers will continue to be listed and traded on NYSE. NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status.

The three issuers are: China Telecom Corporation Limited, China Mobile Ltd., and China Unicorn (Hong Kong) Limited. To me, it sounds like these stocks can still be bought and sold on the New York Stock Exchange. What changed?

Reuters reported that China will take “necessary measures” to safeguard the interest of its companies after NYSE began delisting three Chinese telecom firms. It also called on the United States to meet China half-way and put bilateral trade relations back on track. To me, it appears that China is hoping that president-elect Biden will have a different relationship with China than President Trump did.

The Wall Street Journal reported that the China Securities Regulatory Commission said on January 3, 2021, that the executive order was for political purposes and “entirely ignored the actual situations of relevant companies and the legitimate rights of the global investors, and severely damaged market rule and order.”