Dial it down

5 Jan 2021 By Jennifer Hughes Follow @JennHughes13

The NYSE abruptly aborted plans to toss three state-backed telecom companies worth a combined $164 bln off the bourse because of their deemed military ties. Wild swings in the stock prices left investors as confused as Washington seems to be. Clear policy can’t come soon enough.

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The New York Stock Exchange on Jan. 4 reversed a Dec. 31 plan to begin delisting the shares of China’s three main telecommunications companies. The original plan stemmed from a Nov. 12 executive order signed by U.S. President Donald Trump barring U.S. investments in Chinese companies that Washington says are owned or controlled by the military.

The exchange said it changed its policy following further consultation with the Treasury.

Shares in China Mobile, China Telecom and China Unicom gained on the news after having fallen as much as 5% each in Hong Kong trading on Jan. 4 following the initial decision.

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