NYSE in U- turn on delisting telcos
Move signals flexibility Biden wants on China issues: expert
The New York Stock Exchange ( NYSE) said it no longer intends to delist three Chinese telecom companies – China Telecom, China Mobile and China Unicom ( HK) – in a dramatic U- turn coming only days after it announced the move to comply with a US executive order. Chinese experts translated the move as a voice of reason from some in Wall Street and US political circle, who wish the incumbent US president won't hamstring the incoming Biden administration in making decisions related to China.
“In light of further consultation with relevant regulatory authorities in connection with the Office of Foreign Assets Control,” the NYSE said it “no longer intends to move forward with the delisting action,” according to a statement on Monday ( US time) on the website of Intercontinental Exchange, which is the owner of the NYSE.
China Unicom said Tuesday that it will continue to be listed and traded on the NYSE, and the company will monitor the situation.
China Mobile confirmed on
Tuesday that it will continue to be listed and traded on the NYSE, which will keep evaluating the applicability of the US executive order to the company and its listing status.
Shares of US- listed China Unicom rose about 21 percent in pre- opening trading and China Mobile nearly 10 percent on Tuesday.
Responding to the reversal by the NYSE, Chinese Foreign Ministry spokesperson Hua Chunying Tuesday reaffirmed that the US status as an international financial center hangs on the trust of international companies and global investors, which was built on a spirit of inclusiveness and certainty of rules, calling on the US to respect the rule of law and the market, and make more efforts to safeguard the global financial market order and legitimate rights of investors.
Experts explained the NYSE's U- turn as a hint of the increased flexibility the Biden administration may take when it comes to China policies.
“Without giving detailed reasons, the NYSE's intention reflects flexibility that the incoming Biden administration may adopt, which is what US politicians and businessmen are looking for,” Li Haidong, a professor at the Institute of International Relations at the China Foreign Affairs University, told the Global Times on Tuesday.
With Trump's imminent departure from the White House and Joe Biden set to take office, Trump's “boundless style of bullying” may meet with strong resistance from some people on Wall Street and in the political circle, Li noted.
“These people hope the incumbent US president will not try to hamstring the next president, who should have the flexibility to make decisions,” Li said.