NYSE said that the issuers, China Telecom Corporation Limited , China Mobile Limited <0941.HK> and China Unicom (Hong Kong) Limited , were no longer suitable for listing as the order prohibits any transactions in securities "designed to provide investment exposure to such securities, of any Communist Chinese military company, by any United States person."
Trump's November executive order impacts some of China's biggest companies https://www.defense.gov/Newsroom/Releases/Release/Article/2434513/dod-releases-list-of-additional-companies-in-accordance-with-section-1237-of-fy.
The order sought to give teeth to a 1999 law that mandated that the Department of Defense compile a list of Chinese military companies. The Pentagon, which only complied with the mandate this year, has so far designated 35 companies, including oil company CNOOC Ltd and China's top chipmaker, Semiconductor Manufacturing International Corp.
China has condemned that ban, and fund managers have said it could benefit non-U.S. investors able to pick up the stocks.
NYSE said that it would suspend trading in the stocks on either Jan. 7 or Jan. 11. The issuers have a right to a review of the decision. Each of the telecoms companies named by the NYSE also has a listing in Hong Kong.
China Telecom is also under fire from the U.S. Federal Communications Commission (FCC), which said earlier in December that it had begun the process of revoking the company's authorization to operate in the United States.
The companies could not be reached for comment on a public holiday in China.
Ties between Washington and Beijing have grown increasingly antagonistic over the past year as the world's top two economies sparred over Beijing's handling of the coronavirus outbreak, imposition of a national security law in Hong Kong and rising tensions in the South China Sea.
Separately, President Donald Trump signed a law last month that would kick Chinese companies off U.S. stock exchanges unless they adhere to American auditing standards. Market participants said this would intensify a rush by U.S.-listed Chinese firms to seek back up listings in Hong Kong.
(Reporting by Megan Davies in New York and Alexandra Alper in Washington; additional reporting by Alun John in Hong Kong and Beijing Newsroom; Editing by Kim Coghill)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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