New York Stock Exchange scraps plans to delist Chinese telecoms firms
The New York Stock Exchange has scrapped plans to delist three Chinese telecoms stocks in a shock U-turn.
In a statement last night the exchange said it would no longer go ahead with plans to remove China Mobile, China Telecom and China Unicom Hong Kong from its index.
It said the decision came “in light of further consultation with relevant regulatory authorities”.
The abrupt reversal comes just four days after NYSE announced the move, which followed an executive order signed by US President Donald Trump blocking American investment in firms deemed to be owned or controlled by the Chinese military.
Hong Kong-listed shares surged following the announcement, with China Unicom up 8.5 per cent, China Mobile up more than six per cent and China Telecom almost five per cent higher.
The abrupt U-turn sparked confusion among analysts and investors, with uncertainty over the motivation behind the decision.
China’s foreign ministry had branded the planned delisting “unwise” and slammed what it described as “random, arbitrary and uncertain” rules.
CMC Market’s David Madden said the decision, which came in the final days of Trump’s presidency, would help US-China relations.
The Chinese yuan rose to a 30-month high following the announcement on hopes of a thawing of geopolitical tensions.