Announcing yet another reversal, the New York Stock Exchange (NYSE) said on Wednesday that it will delist three of China’s largest telecommunication companies to comply with an executive order President Trump signed in November.
The NYSE first announced its plan to delist China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. on New Year’s Eve, then said on Monday that it was reversing the decision.
Finally, on Wednesday, the NYSE said after the Treasury Department’s Office of Foreign Asset Control (OFAC) “provided additional, specific guidance” that it will go ahead with delisting the companies.
The OFAC is the enforcement arm of the Treasury Department that ensures US sanctions and financial restrictions are being followed. The executive order signed by President Trump prohibits Americans from investing in Chinese firms that the US government claims have ties to China’s military. The order is set to take effect on January 11th.
The three firms are also listed in Hong Kong and generate their revenue in China, but the removal from the NYSE cuts off a significant source of capital and further escalates US-China tensions.
The companies have been listed on the NYSE for years. For example, China Mobile has been on the exchange since 1997, when it made its initial public offering.