London, UK (CNN) – The New York Stock Exchange will write off 3 Chinese telecom stocks in compliance with an executive order from the Trump administration, the second change in its decision on the issue this week.
On Wednesday, the bourse said it would end trading shares in “China Mobile”, “China Telecom” and “China Unicom” on January 11th.
The decision comes after President Donald Trump banned Americans late last year from investing in companies the US government suspects are either owned or controlled by the Chinese military.
The New York Stock Exchange has now suddenly changed its stance on the issue twice, creating confusion among investors and destroying corporate stocks.
The stock exchange announced for the first time last week that it would write off shares of “China Mobile”, “China Telecom” and “China Unicom”, but reversed course on Monday, citing “further consultations with the relevant regulatory authorities.”
By Wednesday, the exchange had reverted to its original decision, citing “new specific directives” from the US Treasury that were delivered on Tuesday.
This confused investors, as the 3 companies are also listed in Hong Kong, and shareholders sold their holdings there on Monday before buying back again when the New York Stock Exchange reversed its decision for the first time.
Shares in New York fell on Wednesday after the latest announcement. China Telecom dropped 3.7%, China Mobile fell 2.7% and China Unicom fell 2.3%.
The measure is preparing to escalate tensions between the two largest economies in the world shortly before President-elect Joe Biden enters the White House.
The Chinese government criticized the United States for its “deliberate suppression of foreign companies listed in the country” and said earlier that it would take “necessary measures” to protect the interests of Chinese companies.
On Tuesday, Trump signed an executive order banning transactions with eight Chinese apps, including Ali Pay from Antgroup, QQ Wallet from Tencent and WeChat Pay.
The three telecom companies have traded in New York for many years. For example, China Mobile, the largest telecom company in the country, has been listed on the New York Stock Exchange since 1997.
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