NYSE takes u-turn, may go ahead with delisting of 3 Chinese telecom firms: Report

The New York Stock Exchange (NYSE) may finally proceed with the delisting of three Chinese telecommunication companies after a week of uncertainties and u-turns. The Trump administration had issued an executive order last year that barred American investors from investing in certain Chinese companies. However, due to the vague nature of the order, stock markets across the US remained confused about which Chinese companies to delist. 

Read: NYSE Withdraws Plans To Delist 3 Chinese Phone Carriers

The Chinese companies - China Mobile Ltd., China Telecom Corp., and China Unicom Hong Kong Ltd. reportedly lost over $30 billion in market value in the final weeks of 2020. Experts suggested that the Trump administration may have taken the step to harm the Chinese government and companies but at the moment, it is causing trouble to the American investors more than anybody else. According to Bloomberg, NYSE on Monday said it will not delist the three Chinese companies, which resulted in a massive surge in stock prices of the firms. But on Tuesday, the NYSE made a u-turn and said it will allow the Chinese firms to remain on the big board, which saw stock prices of the companies to climb again. Now, again the NYSE has hinted at delisting the mentioned companies, creating confusion among the investors. 

Read: China Warns Of Retaliation For NYSE's Delisting Of Companies

Read: New York Stock Exchange Begins Delisting 3 Chinese Firms Adhering To Trump's Order

Mnuchin expresses disagreement

According to the report, US Treasury Department Secretary Steven T. Mnuchin on Tuesday called NYSE President Stacey Cunningham to express disagreement with the group's decision to allow the three Chinese companies to remain listed on the board. NYSE is owned by Intercontinental Exchange Inc (ICE), which is run by Republican politician Kelly Loeffler's husband. Loeffler, who is a staunch supporter of Donald Trump, lost crucial Georgia Senate run-off election against Raphael Warnock.

It remains to be seen if the NYSE will allow the three companies to remain listed on the board. The three companies have not been removed from other indexes across the US. The Trump administration had issued the ambiguous executive order on November 12, barring American investors from buying shares of certain Chinese companies that the US government alleges is owned or controlled by the Chinese military. 

Read: China Warns Of Retaliation For NYSE's Delisting Of Companies

(Image Credit: AP)