NYSE’s move will limit the access of US investors after the MSCI Inc., S&P Dow Jones indices, FTSE Russell and Nasdaq removed several Chinese firms from their stock indices.
China Telecom Corporation Limited, China Mobile Limited 0941. HK and China Unicom (Hong Kong) Limited will close their trading shares after a week, NYSE said.
In November, President Trump passed an order banning investment in Chinese companies. The order bans American investors from buying and selling shares of Chinese companies identified by Pentagon officials as having links to the Chinese state military. The order is in line with a 1999 law regulating the U.S. Department of Defense to list Chinese military companies. The Pentagon has so far included 35 companies, including oil and gas company CNUC Ltd. and Semiconductor Manufacturing International Corporation, China’s leading chip maker.
China condemned the ban and vowed to retaliate against Washington by preparing a similar list.
Over the past 10 years, many Chinese companies – especially tech companies – have opted to list on NYSE or the Nasdaq, as well as IPOs on home exchanges such as Shenzhen or Shanghai.