The New York Stock Exchange has begun delisting China’s three largest state-run telecom groups to comply with a Trump administration executive order barring US investors from holding stakes in companies suspected of having ties to the Chinese military, reported the Financial Times.
The move by the US’s largest exchange follows similar restrictions from index providers and will restrict the Chinese companies’ access to capital from American investors.
China Mobile, China Telecom and China Unicom all maintain listings in Hong Kong, which will limit the damage of being removed from the NYSE. State-backed China Mobile, the country’s largest mobile network operator, brought in $107 billion in revenue last year. China Telecom had sales of $54 billion and China Unicom reported $42 billion, reported the FT.
The NYSE said the companies had the right to review the decision, with the delistings set to begin as early as January 7.