NYSE to the largest telecommunications operators in China

NYSE said at the latest that it will suspend trading in securities issued by China Mobile, China Telecom Body.

NOT -0.04%

and China Unicom Hong Kong Ltd.

CHU -1.56%

at 4 in the morning on January 11th. He will act four days earlier if he does not receive confirmation from the Depository Trust & Clearing Corp. that the clearing house will settle the transactions made on January 7 and January 8.

The NYSE said it will also stop trading with closed-end funds and listed products listed on the NYSE Arca stock exchange if they hold prohibited stocks.

On Friday, China Unicom said it would issue a timely statement. China Mobile and China Telecom did not immediately respond to requests for comment.

An executive order signed by President Trump in November will prevent Americans from investing in a list of companies under which the US government provides and supports China’s military, intelligence and security services. The ban starts on January 11, and investors have until November to sell their shares.

The list currently includes 35 companies – including China’s largest chip maker – as well as surveillance, aerospace, shipbuilding, construction and technology companies.

Initially, it was unclear whether the order covered both subsidiaries and parent companies and US government leaders were faced with how wide the blacklist should be, The Wall Street Journal reported in December.

However, this week, the Treasury Department said it would add blacklisted subsidiaries if they were majority-owned – or controlled – by a company that was named. The Treasury Office for the Control of Foreign Assets, which manages economic sanctions, also said the ban covered derivatives and deposit receipts, as well as exchange traded funds, indexed funds and mutual funds.

Last month, index compilers, including MSCI Inc.,

FTSE Russell and S&P Dow Jones Indices said they would remove some Chinese shares from their benchmarks because of the order, although they did not rule out shares issued by subsidiaries and subsidiaries.

China Mobile, which has a market value of about $ 117 billion, was not included in the original blacklist, although its parent, China Mobile Communications Group, was. Its US shares are trading thinner compared to its Hong Kong stocks, FactSet data show. About 2.1 million US deposit receipts traded daily on average over the past three months, compared to 34 million shares in Hong Kong per day. Each ADR is equivalent to five ordinary shares in Hong Kong.

Other US initiatives could bring even more deletions. Last month, Mr. Trump signed legislation that could lead Chinese companies to start U.S. markets if U.S. regulators can’t inspect their audits within three years. Some Chinese companies, including Alibaba Group Holding Ltd.

and JD.com Inc.,

have already obtained secondary registrations in Hong Kong, which could help reduce the impact of such an action.

Write to Chong Koh Ping at [email protected]