Amid growing security concerns, the New York Stock Exchange (NYSE) said on Friday it would delist three Chinese companies to comply with a U.S. executive order imposing restrictions on companies identified as belonging to the Chinese military. Publishing (SCMP).
According to a statement from NYSE, the three companies China Mobile, China Telecom and China Unicom Hong Kong will be delisted between January 7th and January 11th, and the delisting process has begun.
With a separate listing in Hong Kong, these companies generate all revenues in China without any meaningful presence in the United States. Therefore, it is an abusive business practice to use US soil to make investments in China. The company engages in civil and military production with funds from US investors.
Earlier, US President Donald Trump signed an executive order banning Americans from investing in 31 companies on November 12th.
The order banned US investors from buying and selling stock on a list of Chinese companies designated by the Department of Defense as having military ties.
In fact, the US State Department said in a report, “The Chinese Communist Party’s threat to US national security extends to our financial markets and affects US investors.
“Many of the major stock and bond indices developed by index providers such as MSCI and FTSE include malicious People’s Republic of China (PRC) companies listed on the Department of Commerce’s corporate list and/or the Department of Defense’s list of communist Chinese military companies.” Has been added.
SCMP reported that this executive order removed a series of companies from indices aggregated by MSCI, S&P Dow Jones Global Indices, and FTSE Russell.
Following actions from the United States and Japan, Taiwan’s Ministry of Economy tightened controls over Chinese investment on Wednesday due to national security concerns.
Under the new regulations that took effect from Wednesday, Chinese military-owned enterprises and CCP-owned enterprises were banned from investing in Taiwan.