NYSE to Delist Chinese Telco Giants on U.S. Executive Order
By Max Zimmerman and Gregor Stuart Hunter 2021年1月1日 10:03 JST Updated on 2021年1月1日 13:38 JST • Exchange will remove China Mobile, China Telecom, China Unicom • Latest trade war fracas follows battle for IPOs with Hong Kong The New York Stock Exchange (NYSE). Photographer: Michael Nagle/Bloomberg
The New York Stock Exchange said it will delist three Chinese corporations to comply with a U.S. executive order that imposed restrictions on companies identified as affiliated with the Chinese military.
China Mobile Ltd., China Telecom Corp Ltd., China Unicom Hong Kong Ltd. will be suspended from trading between Jan. 7 and Jan. 11, and proceedings to delist them have started, according to a statement by the exchange.
Quantitative hedge fund managers including Renaissance Technologies LLC, Dimensional Fund Advisors LP and Two Sigma Investments LP were among the largest holders in these U.S. listings but the stakes they held at the end of September were small, 13F filings show.
The three Chinese companies have separate listings in Hong Kong. All generate the entirety of their revenue in China and have no meaningful presence in the U.S. except for their listings there. Their shares are also thinly traded on the New York Stock Exchange compared to their primary listings in Hong Kong, making this NYSE delisting more of a symbolic blow amid heightened geopolitical friction between the U.S. and China.
U.S. President Donald Trump signed an order in November barring American investments in Chinese firms owned or controlled by the military, in a bid to pressure Beijing over what it views as abusive business practices. The order prohibited U.S. investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as having military ties.
Vowed to Protect
The Chinese Foreign Ministry later accused the U.S. of “viciously slandering” its military-civilian integration policies and vowed to protect the country’s companies. Chinese officials have also threatened to respond to previous Trump administration actions with their own blacklist of U.S. companies.
The executive order has resulted in a series of companies being removed from indexes compiled by MSCI Inc., S&P Dow Jones Global Indices and FTSE Russell.
The U.S. Federal Communications Commission in May barred China Mobile from operating in the U.S. In December, it ordered carriers to remove equipment made by Huawei Technologies Co., and begun looking into whether China Telecom should be allowed to operate in the country. China Telecom’s U.S. unit told the FCC in a June 8 filing that it’s an independent business based in the U.S. and not subject to Chinese government control.
Global exchanges, including NYSE and Nasdaq Inc., courted Chinese companies during the past decade as they attempted to expand their IPO business, particularly in the internet sector. In response, Hong Kong Exchanges & Clearing Ltd. changed its rules in recent years to lure back listings, including allowing share sales by companies with weighted voting rights -- strengthening the power of company founders at the expense of weaker protections for minority investors.
Companies including e-commerce giants Alibaba Group Holding Ltd. and JD.Com Inc., which already had listings in New York, conducted secondary listings in Hong Kong in the past two years as tensions between the U.S. and China intensified on a range of issues including trade and the novel coronavirus.
Reporters, editors complained that they were not able to ask questions in the video conferences
By David Rutz | Fox News
President-elect Joe Biden's transition team disabled the chat function for reporters on conference Zoom calls, where journalists had been pressing officials to take more questions.
"The Biden transition team appears to have disabled the public chat function on its transition zoom calls, a place where I and others had been routinely complaining to them to take more questions," incoming Politico White House editor Sam Stein tweeted Wednesday.
Reporters on the call had to use a "raise hand" function to register they wanted to ask a question.
Stein and other reporters expressed frustration on the chat on Dec. 18 after one Zoom call where the transition team took only five questions.
REPORTERS GROW FRUSTRATED AS BIDEN TEAM REFUSES QUESTIONS
"Hey guys, there [are] tons of folks looking to ask questions and since this is being done once a week, could we PLEASE go longer or at least hold more frequent briefings," Stein wrote on the chat.
"Any chance you can take a few more questions? There are a lot of folks here with questions," Zeke Miller from The Associated Press added.
"Is there a point in saying we want to ask questions if you only call on the same small group every week?" said White House reporter Andrew Feinberg.
Biden's transition team did not respond to a request for comment.
Biden campaign press secretary T.J. Ducklo told CNN last month that Biden believed "transparency is incredibly important" regarding his relationship with the press.
"He also believes, though, that it's the media's job to hold him accountable," he said. "He's there to do the people's work and he welcomes that relationship. He welcomes their role, the media's role in our democracy and I think it will be, frankly, the polar opposite of what we've seen over the last four years... I think you'll see a huge change in the culture in the way this White House treats the media."