NEW YORK: S&P Dow Jones Indices announced Wednesday (January 6) that it will remove American Investment Receipts from three Chinese telecom companies, China Mobile, China Telecom Corporation and China Unicom (Hong Kong), from their benchmarks.
“S&P DJI has the news to move forward with the removal of the above ADRs from its indices following the latest confirmation from the New York Stock Exchange (NYSE) that the ADRs will be on listing them, “he said in an e – mail statement.
The NYSE said Wednesday that it will hand over all three Chinese companies effective Jan. 11, confirming the latest version of the case a day after U.S. Treasury Secretary Steve Mnuchin told NYSE chiefs he did not agree with co- earlier closure to reverse the delistings.
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The flip-flopping clarifies the controversy over whether companies included in an order of action issued by President Donald Trump in November barred U.S. people from investing in public trading companies that Washington considers tied to the Chinese military.
Investors had sold positions in the securities after the NYSE announced plans last week to list China Mobile, China Telecom and China Unicom. But the shares rose after the NYSE said it would not do so and fell again after the most recent front-end.
Less than 24 hours before its latest release, S&P Dow Jones Indices had also said it would not remove the companies’ ADRs, according to a NYSE decision at the time.
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Hong Kong shares of China Unicom followed a loss among the three telecom stocks in China listed by NYSE at the start of trading in Asia, down as much as 9.4 percent.
China Mobile shares were down as much as 6.8per percent, while China Telecom Corp.’s shares fell 5.8 percent.