NYSE to delist 3 Chinese telecom companies to conform with US executive order – world news

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Amid growing concerns of security, the New York Inventory Exchange (NYSE) said on Friday that it is going to delist three Chinese companies to conform with a US executive order that imposed restrictions on companies that were identified as affiliated with the Chinese military, reported South China Morning Post (SCMP).

The three companies — China Mobile, China Telecom and China Unicom Hong Kong — will be delisted between January 7 and January 11 and proceedings to delist them have started, according to a observation by the NYSE.

These companies having separate listings in Hong Kong generate all of the revenue for China without any meaningful presence in the United States. Thus the use of the United States earth to generate investments in China – an abusive trade practice. These companies are involved in civilian and military production with money from US investors.

Earlier, US President Donald Trump on November 12 had signed an executive order that prohibits Americans from making an investment in 31 firms.

The order prohibited US investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as having military ties.

“The Chinese Communist Party’s threat to American national security extends into our financial markets and impacts American investors,” the State Branch said in a factual outline.

“Many major inventory and bond indices developed by index providers like MSCI and FTSE include malign People’s Republic of China (PRC) companies, listed on the Branch of Business Entity List and/or the Branch of Defense List of Communist Chinese military companies,” it added.

The executive order has resulted in a series of companies being removed from indexes compiled by MSCI, S&P Dow Jones Global Indices and FTSE Russell, reported SCMP.

Following the steps of the United States and Japan, the Taiwanese Economic Matters Ministry on Wednesday too tightened keep an eye on over Chinese investments because of national security concerns.

Based on new regulations that came into effect from Wednesday, Chinese military-owned companies and Chinese Communist Party-owned companies were banned from making an investment in Taiwan.

Top stories/ News / India

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