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“We’ve changed our minds!” – NYSE to Chinese telcosINTL

“We’ve changed our minds!” – NYSE to Chinese telcos

It seems that the saga between the New York Stock Exchange and China’s telecoms has more surprising twists than an episode of Game of Thrones.

The NYSE twice changed their mind recently about delisting three major Chinese telecoms – China Mobile, China Unicom, and China Telecom – announcing on Wednesday it was indeed going to proceed with the removal process after having said earlier this week that it wasn’t going to do so.

These Chinese telecommunication companies were the target of an executive order from U.S. President Donald Trump, whose goal is to ban trading of shares belonging to companies that his administration claim to have links to the Chinese military. The NYSE said its U-turn was the result of “new specific guidance” from the Treasury Department’s Office of Foreign Assets Control.

These companies’ shares are set to be suspended on Monday, but it is worth noting they can still appeal the decision.

why it matters
While the NYSE's decision is more of a symbolic one, considering only a small percentage of the telecoms' total shares are traded in New York, it is a chance for Donald Trump to assert his position in the ever-lasting trading war between the U.S. and China before he leaves the White House. The delisting is surely going to add to the tension between Beijing and Washington, hence impacting markets across both sides of the globe.