Beijing protests over move to delist Chinese telecoms firms from New York Stock Exchange

Catherine Wong, South China Morning Post

Posted at Jan 03 2021 08:23 AM

China protested on Saturday over the US move to delist China's three largest state-run telecoms groups from the New York Stock Exchange and said it will take the "necessary measures" to safeguard its companies' interests.

The NYSE said on Thursday it was starting the process of delisting China Telecom, China Mobile and China Unicom Hong Kong to comply with a Trump administration executive order issued in November that bars US investments in Chinese firms suspected of having ties to the Chinese military.

The three companies will be delisted between January 7 and January 11, according to a statement by the exchange.

The executive order has also resulted in a series of companies being removed from indexes compiled by MSCI, S&P Dow Jones Global Indices and FTSE Russell.

In May the US Federal Communications Commission barred China Mobile from operating in the US. In December, it ordered carriers to remove equipment made by Huawei Technologies, and started looking into whether China Telecom should be allowed to operate in the country.

China's commerce ministry said in a statement: "The Chinese side opposes the measure by the US side, which abuses national security, and will take the necessary measures to safeguard the rightful interest of Chinese companies."

The decision will not only harm the interests of the Chinese companies but also those of American investors, the ministry said.

"At the same time, we hope the US side can meet the Chinese side halfway, work to create a fair, stable and predictable market environment for the two countries' companies and investors, and to bring bilateral economic ties back on the right track."

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