The signs of China Telecom, China Mobile and China Unicom are seen during the China Import International Exhibition (CIIE) at the National Exhibition and Convention Center in Shanghai, China, November 5, 2018.
Aly Song | Reuters
The New York Stock Exchange will shut down three Chinese telecommunications giants.
The stock exchange will eliminate US-traded shares of China Telecom, China Mobile and China Unicom from the Big Board, the NYSE said on Wednesday.
Last week, the NYSE said it would withdraw its shares in order to comply with an executive order signed by President Donald Trump. The order was intended to ban American companies and individuals from investing in companies, according to which the administration would have helped the Chinese army.
He then reversed that decision on Monday, causing a lot of confusion. Treasury Secretary Steven Mnuchin told the exchange he did not agree with the revocation, an administration official told Eamon Javers on Tuesday.
The NYSE said the second reversal was due to new guidance from the Treasury Department’s Office of Foreign Assets Control, according to which US people could not make certain transactions with the three companies as of January 11th.
Shares of China Mobile fell 3.5% in premarket trading after the NYSE update. China Telecom lost more than 4%, while China Unicom lost 1% in early trading.
Chinese officials criticized the NYSE’s initial decision, with a spokesman for China’s Securities Regulatory Commission, saying on Monday that the executive order “completely ignored the real situations of relevant companies and the legitimate rights of global investors and severely affected the order.” and market order. “
Trump issued the initial order in November, and the administration previously directed the Federal Investment Council for Retirement Savings to avoid investing in Chinese companies.
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