The New York Stock Exchange (NYSE) announced on Thursday that it intends to deregister three Chinese companies with alleged links to the Chinese military in order to comply with one of the President Trump
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The NYSE announced has begun proceedings to remove China Mobile Ltd., China Telecom Corp Ltd. and China Unicom Hong Kong Ltd. and will be suspended from trading from January 7-11.
The deregistrations come as an executive decision in November banning US investment in Chinese army-regulated companies is due to take effect on January 11th.
Several hedge fund managers, including Renaissance Technologies LLC, Dimensional Fund Advisors LP, and Two Sigma Investments LP, held the largest holdings in the U.S. listings. Bloomberg News reported.
All three Chinese companies that will be released soon have separate listings in Hong Kong and do not have a significant US presence outside their lists, according to Bloomberg News, which noted that the move was more symbolic amid tensions between countries.
In November, Trump said signed his executive order because the Chinese government is trying to influence “Chinese civilian companies to support their military and intelligence activities,” which he said posed an “unusual and extraordinary threat” to the United States.
Earlier this year, the Department of Defense released a list of dozens of Chinese companies it said had links to the military. The Chinese Foreign Ministry accused the US of “violently slandering” civil-military integration policies and said it would stand by their companies, according to Bloomberg News.
Exchanges such as the NYSE have previously tracked Chinese companies over the past decade as they try to expand their initial public offering business.