NYSE no longer intends to delist Chinese firms despite U.S. executive order
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The New York Stock Exchange announced late Monday it no longer plans to delist three Chinese companies.
Why it matters: The NYSE said last Thursday it would suspend trading action from Jan. 7 for China Mobile, China Telecom, and China Unicom Hong Kong following a Trump executive order that imposed restrictions on firms the U.S. identified as being affiliated with the Chinese military.
What they're saying: NYSE spokesperson Farrell Kramer declined to comment on what had changed in relation to compliance with the executive order. But Kramer referred Axios to a stock exchange statement saying that "in light of further consultation" it no longer intends to move forward with the delisting action."
- "At this time, the Issuers will continue to be listed and traded on the NYSE," per the statement.
- "NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status."
Of note: The Chinese Ministry of Commerce on Saturday reacted to the NYSE's original announcement by saying it would take "necessary measures" to protect China's companies, per Reuters.
- "This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic," the ministry said in a statement.
Background: In November, President Trump signed the executive order prohibiting American firms and individuals from owning shares in any of the 31 Chinese companies previously listed as enabling China's army, effective Jan. 11.
- The order described the army is a threat to the U.S. and is "increasingly exploiting United States capital" to gain an edge in its military-industrial complex.
Editor's note: This article has been updated with new details throughout.
