The three largest Chinese network operators are about to say goodbye to the US stock exchange. The New York Stock Exchange (NYSE) has dismissed the appeals from China Mobile, China Telecom and China Unicom to the January trading ban, the companies said on Friday on the Hong Kong Stock Exchange. Accordingly, it is to be expected that the US Securities and Exchange Commission (SEC) will approve the exclusion from trading in the course of next week.
Against the background of the trade war between the USA and China, US President Trump had issued a decree prohibiting US citizens from trading in the securities of companies that also work for the People’s Liberation Army of the People’s Republic of China. Under pressure from the US government, the NYSE suspended trading in shares in the part-state carriers China Mobile, China Telecom and China Unicom in January after a brief back-and-forth.
Hope after a change of government
Joe Biden is now in the White House. So far, however, the new US government has made no move to deviate significantly from Trump’s course in economic relations with China. After the change of government, the three network operators asked the NYSE to reconsider their decision, but apparently unsuccessful: On Friday, the stock exchange applied to the SEC for approval to list the securities, which is expected in the course of next week.
The shares of the Chinese network operators are mainly traded on the Hong Kong stock exchange. In the USA, so-called American Depositary Receipts (ADR) are traded, each of which represents a certain number of deposited shares in a company. American investors can also trade shares in foreign companies that are not themselves listed on US stock exchanges. Affected investors can now exchange their US shares for shares that are traded on the Hong Kong Stock Exchange, the companies said, according to a report in the Wall Street Journal.
Xiaomi successful in court
The Chinese smartphone manufacturer was also caught by Trump’s ban beam. The US Department of Defense had blacklisted the Chinese company, one of the largest smartphone manufacturers in the world. On the other hand, Xiaomi was successfully brought to court: A US federal court lifted the restrictions affecting Xiaomi with an injunction. The US Department of Defense did not justify it adequately and exceeded its powers, it said to justify.
The telecommunications giant Huawei, which has been badly hit by the US sanctions, is also taking legal action against the restrictions in the USA.
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