The New York Stock Exchange announced Thursday evening that it would deregister three Chinese companies to comply with an executive order imposing restrictions on companies identified by the United States as affiliated with the Chinese military.
Why is this important: The announcement, which comes late on New Years Eve when many ignore it, is the latest escalation in tensions between the United States and China.
Details: The companies – China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. – will be suspended from their activities between January 7 and January 11, and a delisting procedure has started, the exchange said in a statement.
- The companies have separate listings in Hong Kong and generate their revenue in China. They have no significant presence in the United States other than their NYSE listings, according to Bloomberg.
The executive decree, signed by President Trump in November, bans U.S. businesses and individuals from owning shares in any of the 31 Chinese companies previously listed as enabling the People’s Liberation Army, effective Jan.11.
- The order says the People’s Liberation Army is a threat to the United States and is “increasingly exploiting the capital of the United States” to gain an advantage in its military-industrial complex.
Our thought bubble, via Felix Salmon of Axios: China Mobile, currently valued at $ 117 billion, has been a mainstay of the New York Stock Exchange since its successful IPO in 1997.
- His arrival at the Big Board was a major development in the globalization of capital markets. His despicable departure is a sign that their de-globalization has really begun.