The New York Stock Exchange (NYSE) on Thursday announced plans to scrap three Chinese companies with alleged ties to the Chinese military in order to comply with one of President Trump
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The NYSE announced proceedings have begun to bring China Mobile Ltd., China Telecom Corp Ltd. and China Unicom Hong Kong Ltd. to be deleted and trade will be suspended between 7 and 11 January.
The delisting comes as a November executive order prohibiting US investment in military-regulated Chinese companies that takes effect on Jan. 11.
Several quantitative hedge fund managers, including Renaissance Technologies LLC, Dimensional Fund Advisors LP and Two Sigma Investments LP, had the largest stakes in the US listings, Bloomberg News reported.
All three of the soon-to-be-deleted Chinese companies have separate listings in Hong Kong and have no significant US presence outside of their listings, according to Bloomberg News, which noted the move was more symbolic amid tensions between the countries. .
In November, Trump said he was signed its implementing decree because the Chinese government is trying to influence “Chinese civilian companies to support their military and intelligence activities,” which he says poses an “unusual and extraordinary threat” to the US.
Earlier this year, the Ministry of Defense published a list of dozens of Chinese companies allegedly associated with the military. China’s State Department accused the US of “viciously maligning” military-civilian integration policies and said it would support their companies, Bloomberg News said.
Stock exchanges like the NYSE had previously chased Chinese companies in expanding their IPOs over the past decade.