NYSE to delist China Mobile, China Telecom, and China Unicom
The New York Stock Exchange (NYSE) has announced that, to comply with Executive Order 13959, it will begin delisting the securities of China Telecom Corp. Ltd. (NYSE:CHA), China Mobile Ltd. (NYSE:CHL), and China Unicom (Hong Kong) Ltd. (NYSE:CHU). Signed on November 12, 2020, Executive Order 13959 prohibits any transaction in publicly traded securities, derivatives, and other investment activities in companies deemed by the Secretary of Defense to be a “Communist Chinese military company.” The order, formally titled “Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies,” goes into effect 9:30 a.m. Eastern Standard Time on January 11, 2021.
The NYSE says that, subject to confirmation that the Depository Trust & Clearing Corp. (DTCC) will settle trades executed on January 7 and 8, 2021, it will suspend trading in shares of the three Chinese telecommunications services providers at 4:00 a.m. on January 11. Without such confirmation, the NYSE will suspend trading at 4:00 a.m. on January 7, 2021. DTCC, among other offerings, provides trade processing services.
President Donald Trump signed the Executive Order as part of an overall initiative by the U.S. government to limit access to U.S. technology and funding by Chinese companies deemed to pose security threats. Such companies include communications technology suppliers Huawei and ZTE (see, for example, "President Trump labels ICT threat from foreign countries a national emergency" and "FCC rules USF money can’t be spent on Huawei, ZTE equipment").
As has been the case with similar actions, the Chinese government condemned the pending delistings. “I must stress that China firmly opposes the U.S. government's politicization of trade issues and unjustified suppression of Chinese companies by abusing state power under the weakest pretext of national security. This is in serious violation of market competition principles and international trade rules the U.S. side always prides itself on,” commented Foreign Ministry Spokesperson Hua Chunying during the ministry's daily press conference today.
“Lately some political forces in the United States have been wantonly suppressing foreign companies listed in the country, exposing an arbitrary and capricious uncertainty in its rules and mechanisms. This is ill-advised as it will not only harm the interests of international investors and the national interests and image of the United States, but also the global standing of the American capital market,” she continued. “We hope the United States will respect the market and rule of law and do things conducive to upholding order in the global financial market, protecting investors' lawful rights and interests, and promoting the steady development of the global economy. The Chinese government will take necessary measures to resolutely safeguard Chinese companies' rights and interests.”
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.