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The New York Stock Exchange just announced last Thursday (31) that it would begin delisting procedures for China Mobile, China Telecom, and China Unicom, and it only took a New Years holiday, indicating that it no longer plans to do so. . This sudden change in policy has baffled almost all relevant parties.
The market was positive for the first time. Therefore, the shares of China Mobile, China Telecom and China Unicom Hong Kong rose sharply on Monday, and the offshore yuan rose further. I think the United States and China have a chance to relax. But Bloomberg columnist Shuli Ren believes investors have missed the point. This incident is actually another reason why Chinese companies should pull out of US stocks.
Ren said that kicking mainland Chinese companies off US exchanges was an effort by the White House to restrict China’s access to US funds. The Trump administration and its political allies argue that the accounting operations of Chinese companies are unreliable and that Beijing does not allow the United States to conduct audits, which are risks to investors.
The United States has no shortage of examples of this situation. The most recent is Luckin Coffee, whose accounting fraud, but the United States has no control, but once became the darling of American stocks.
There are many reasons for this phenomenon. Ren believes that the key factor is that China’s credit cycle is fast and intense, and the regulatory environment is constantly changing, but the Americans cannot understand the situation.
Similarly, the understanding and understanding of American policies by Chinese companies is not so clear. How much does the United States have to fight against China?
Ren noted that taking the NYSE policy reversal this time as an example, the key factor for the final change is that the official statement is “based on further consultation with the relevant regulatory agencies.” There are no more details than that, highlighting the fact that the United States does not have any predictable Compliance or policy scale.
If the Trump administration’s executive order prohibits “any trading of government securities with Chinese companies related to the military,” the precautionary approach of the New York Stock Exchange will not be a major problem. They may reason that unless they are removed from the market, they will not be able to stop it. Trade, so if the stock market implements this plan, no problem.
Ren said that, in the final analysis, there has not been a subtle shift in geopolitics between the two completely opposite NYSE stocks.
Ren believes that just as his colleagues in New York are secretly exploring Beijing’s policies, Asian traders are also confused about the way American politics works, and Chinese companies don’t have to go to the American market to list. in a bag.
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