The New York Stock Exchange announced just before year-end that it had started proceedings to delist China Telecom, China Mobile and China Unicom's shares from the stock market. The move follows an executive order signed by US President Donald Trump on 12 November, prohibiting any US companies or people from investing in companies with ties to the Chinese military. Trading will stop for these securities on 11 January. The US Department of Defense had previously listed the three companies as having significant connections to Chinese military and security forces.
The companies’ Hong Kong offices did not immediately respond to requests for comment on the New Year’s Day holiday, the New York Times reported. The daily noted that all three companies are ultimately owned by the State-owned Assets Supervision and Administration Commission. They are the only three companies in China that are allowed to provide broad telecommunications network services, which Beijing regards as a strategic industry that must remain under state control.
China Mobile came out with a statement following the notice of delisting, saying it has complied strictly with the laws and regulations of its listing venues since it started trading in 1997, and that it has been operating in accordance with laws and regulations. The company said it “regretted” NYSE’s decision, which it said might increase volatility for its securities, and so affect their prices. “The company will promptly conduct an investigation and analysis and strengthen its communication and liaison with the regulatory authorities of its listing venues, with a view to protecting the lawful rights of itself and holders of the company’s securities,” China Mobile said.
