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NEW YORK: The New York Stock Exchange said on Monday (January 4) that it no longer intends to exclude three Chinese telecom giants that have been targeted by the outgoing administration of US President Donald Trump, in a surprising reversal of an announcement made just last week.
The exchange said in a statement that it had made the decision “in light of further consultation with the relevant regulatory authorities.”
It said on Thursday it would delist China Mobile, China Telecom and China Unicom Hong Kong following measures by the U.S. government to block investment in 35 companies deemed owned or controlled by the Chinese military.
READ: China says it will take action against the exclusion of the United States from its telecommunications companies
Shares of Hong Kong-listed companies rose after the announcement, with China Unicom rising 6.7 percent, while China Mobile and China Telecom each gained 5 percent.
“(This) shows how little light there is on that set of regulatory guidelines so far, especially at a time when the United States is changing administration,” said Tariq Dennison, managing director of GFM Asset Management in Hong Kong.
Dennison’s funds hold China Mobile shares in both Hong Kong and New York, but it has recently largely unwound New York’s positions, in part to find investments from US clients who are less exposed to Sino-state tensions. United, which will likely persist.
“I don’t think Biden will magically reduce anything,” Dennison said.
“He’s inheriting a tense position in US-China relations where he probably doesn’t want his first 100 days remembered for instant concessions.”
China Unicom and China Telecom said in statements that they had taken note of the development and would release information in accordance with regulations, adding that investors should pay attention to investment risks.
A representative for China Mobile was not immediately available for comment.
A representative for the NYSE declined to comment beyond the exchange’s statement.
China’s Foreign Ministry had called the planned exclusion of the three companies “reckless” and denounced what it said were “random, arbitrary and uncertain” rules.
The latest NYSE announcement briefly pushed an already soaring Chinese yuan to a new 30-month high in hopes that it could herald some kind of easing in geopolitical tension.
