The New York Stock Exchange has announced that it no longer plans to wipe out the three Chinese telecommunications giants. The TASE announced that it had canceled the plans after “further consultation with the relevant regulatory authorities regarding the Ministry of Foreign Property Control”. Following the announcement of the shares traded on the Hong Kong Stock Exchange by China Telecom, China Mobile and China Unicom have gone up.
Last Thursday, the New York Stock Exchange announced that it would wipe out Chinese companies as part of an executive order signed by President Donald Trump in November. The November ordinance sought to prevent American companies and individuals from investing in companies that the Trump administration claims help the Chinese military.
Major stock indices like MSCI, SP500 and Russell indices, as well as the popular trading app Robinhood, have taken steps to comply with the executive order. China’s Securities Regulatory Commission said the order was based on “political objectives” and “completely ignored the realities of relevant companies and the legitimate rights of global investors, and severely damaged government and market order.”
Trump’s investment ban was due to take effect next Monday, just over a week before President-elect Joe Biden is due to enter the White House. But the current change will ease some of the turmoil in Trump’s tenure. Biden is unlikely to make immediate changes to U.S.-China relations, but has repeatedly said he would prefer to work with the U.S. allies on enforcing “rules of the way” for world trade. Still, this approach will stand in contrast to that of the Trump administration, which has often taken aggressive and unilateral actions to challenge China on economic and national security issues.
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