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Wall Street, China May Have Influenced NYSE Reversal on Chinese Telecoms

Joyce Huang

   TAIPEI - In a surprising reversal, the New York Stock Exchange (NYSE)
   announced early this week that it no longer intended to delist three
   Chinese telecom companies that had been targeted by the outgoing Trump
   administration for suspected ties to the Chinese military.

   The NYSE officially announced Monday that based on "further
   consultation with relevant regulatory authorities," it no longer
   planned to delist China Telecom, China Mobile and China Unicom from
   trading.

   The recent delisting was prompted by U.S. President Donald Trump's
   November executive order calling for the removal of companies from U.S.
   markets described as "communist Chinese military" companies.

   The U.S. Treasury Department subsequently released a list of 35
   so-called communist Chinese military companies, including the three
   that had been set to delist from the NYSE as soon as Thursday.

   The NYSE did not explain the exact reason for this major turnabout, but
   some observers speculated it could be related to pressure from Wall
   Street and corporate executives concerned about losing investment
   opportunities or fearful of economic retaliation from China, which has
   been locked in a bitter trade war with the United States throughout the
   greater part of Trump's four years as president.

   With President-elect Joe Biden preparing to take the helm on January
   20, U.S. financiers and market analysts see the wisdom in not taking
   additional punitive regulatory action against the three companies that
   dominate China's mobile business until Biden's policies toward China
   become clearer.

   They say once Trump leaves office, it may be difficult or ill-advised
   for the U.S. to start another wave of financial warfare against China
   and its economic interests.

   Still, some analysts believe the U.S. banning Chinese companies with
   ties to the Chinese military serves U.S. national interests and that
   the Biden administration may seek to follow through the blacklist
   policy in a way that least affects U.S. investors.

   In a statement issued late Monday, the NYSE said its decision-making
   was not over, and that NYSE regulators "continue to evaluate the
   applicability" of the outgoing president's executive order.

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