The New York Stock Exchange on Wednesday said it would go ahead with its plan to delist three Chinese telecommunications companies next week, after drawing criticism from the US Treasury secretary over its earlier decision to keep the businesses trading on the Big Board, reported the Financial Times.
The decision was based on “new specific guidance” the NYSE received from the Treasury on Tuesday that forbade certain trading in the three Chinese groups, the exchange operator said.
NYSE, owned by Intercontinental Exchange, on New Year’s Eve had announced its intention to delist the three groups. Days later it abruptly reversed course, given ambiguity in advice it had received from the Treasury, according to an FT source.
Shortly after NYSE’s latest reversal on Wednesday, the Treasury moved to broaden the number of Chinese-linked entities covered by the executive order, warning that Americans could not purchase shares of subsidiaries with names that closely match companies listed in the January 11 order.