The decision to de-list the shares was first announced 31 December, but subsequently reversed four days later, following further talks with the companies and regulators. The de-listing sent the share prices of all three companies lower.
The confusion apparently stemmed in part from whether the executive order issued in November applied also to subsidiaries of the over 30 companies named. The companies listed on the NYSE are not named directly in the order, rather their parent companies. The new guidance from the Treasury clarifies that subsidiaries are also covered if their name "exactly or closely matches" that of one of the companies listed in the original order.
The Chinese operator said they were disappointed by the decision and reiterated that they had complied with all applicable regulations and laws.
According to the Wall Street Journal, the White House is discussing adding more companies to the list of prohibited investments, including Alibaba and Tencent, China's two most valuable listed companies. State and Defense Department officials in recent weeks have discussed expanding the blacklist, including discussing with the Treasury the possible impact on capital markets, people familiar with the matter told the paper. The plan remains under discussion and might not proceed, they added.
