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NYSE Start Delisting Chinese Companies

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The New York Stock Exchange will start delisting Chinese corporations affiliated with their country’s military beginning today. This move follows a US executive order imposing restrictions on Chinese military-owned or controlled companies.  Between January 7 to 11, companies China Mobile Ltd., China Telecom Corp Ltd., and China Unicom Hong Kong Ltd. will cease trading on the New York Stock Exchange. These three companies generate revenue in China and deal with business in Hong Kong. As such, exposure in the NYSE is thin at best. This means the delisting is more of a symbolic action rather than an economic sanction.

RELATED: Trump Targets Chinese Apps with Executive Orders

Among the affected hedge US fund managers are Renaissance Technologies LLC, Dimensional Fund Advisors LP, and Two Sigma Investments LP. They comprise three of the largest holders of US listings of the above However, by September, they held only small stakes in the Chinese companies.

Trump’s Executive Order

Last November, President Donald Trump signed an executive order that disallowed US investments in Chinese firms with military connections. The order aims to pressure the Chinese government in reining in abusive business practices. Consequently, US investors cannot trade shares of companies listed and vetted by the Pentagon as having People’s Liberation Army connections.

China Mobile and the others were among the most prominent companies listed in American indexes. In response, Beijing accused the US of slandering their military-civilian integration efforts. China vowed to protect its companies. At the same time, they threatened to blacklist US companies.

Other Actions

In May, the US Federal Communications Commission forbade China Mobile from operating in the US. Then, the FCC instructed local telecom carriers to remove all equipment supplied by Huawei Technologies Co. Next, it started looking into China Telecom’s operations in the country and began mulling if they should revoke all of Huawei’s working permits. China Telecom’s US division responded by insisting it’s an independent business based in the States. Therefore, they are not subject to Chinese control.

Why the NYSE Lists Chinese Companies

NYSE began recruiting Chinese companies over the last decade to attract global investments.  In return, these firms can benefit from an NYSE listing to attract more shareholders. In fact, there are more investors who are willing to invest in foreign companies than Chinese investors investing in local businesses. The delisting of Chinese companies signals a backtrack spurred by concerns outside of trading activities. Until China and the US resolve their differences, expect more repercussions. 

Meanwhile, Hong Kong Exchanges changed their rules to take back former listings. HK indexes allow companies to sell shares with weighted voting rights. This strengthens the company founders’ powers while weakening protections for minority investors. Large Chinese companies such as Alibaba Group Holding Ltd. and JD.Com Inc. created secondary listings in Hong Kong in the past two years apart from the NY listing. Doing so gives firms a way out as tensions between the US and China continue to simmer. Lately, the two countries trade accusations of trade violations, espionage, and coronavirus origin stories.

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Watch the Bloomberg Markets and Finance news video reporting on the SEC as they push the delisting of Chinese companies connected to the Chinese Military:

Do you agree with the delisting of Chinese companies with Chinese military connections from US Stock exchanges?

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Do you agree with the delisting of Chinese companies with Chinese military connections from US stock exchanges? Let us know what you think about the presence of Chinese companies in the US trade market. Share your thoughts in the comment section below.

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19 Comments

19 Comments

  • Steve Casion says:

    Keep any Chinese company or products the hell out of the United States 🇺🇸 Period

  • Stanley says:

    The hole wold should not trade with them. Make them a pirier

  • Chito says:

    Yes for the sake of national security all companies owned and controlled or partially controlled by the Chinese military must not be allowed in the USA.

  • Anonymous says:

    Chinese companies should NOT be allowed to buy/own U.S. infrastructure, i.e. food, fuel, land, utilities, education. That’s a sure way for us to lose our identity & control of our own destiny.

  • Sherrie says:

    As Americans we have f####d up by letting China and other countries purchase commercial real estate in the United States. So many of our hotel chains have been purchased by outsiders and the majority of them are operated ONLY by people from other countries with many not speaking fluent English. Their protocols and standards for repairs are pathetic to say the least but highway robbery to stay overnight at!! They usually don’t have to pay near the taxes because they are foreigners and get huge tax breaks!!
    TIME TO TAKE BACK AMERICA
    SEND THEM PACKING BEFORE THEY GET TO THE BORDERS!!!
    NO MORE CHINESE OPERATED BUSINESSES!!!!

  • Barbara Buehler says:

    Very easy way to send them packing, don’t go to their business at all. Just let them sit, and go elsewhere. They don’t do any business they will sell and leave. And by the way, good riddance.

  • David says:

    It should have never started with anyone…..these law makers that betray us should be sent to war

  • Bill Wilson says:

    I agree with the comets above. It’s sad where our political class has taken us. China has one goal and one goal only . To dominate the world. Watch how they treat there citizens. Do you want this coming to a city near you. Most of our federal government on both sides are just looking to enrich themselves. Both sides. President Trump is not only a good president for our country he’s a good president for the world. He has slowed down China’s progression. Biden will wipe that all away. The left has taken use to far. Watch out something is about to happen.

  • Bruce Zeigler says:

    Drain them like they drained us. Kick them out of the WTO. As a matter in fact, kick the UN out of the United States.

  • Ted Egusquiza says:

    One of the best thing our president has done,China is an evil empire.

  • Nancy P. says:

    CONNECTED TO CHINESE MILITARY OR NOT, WILL NO LONGER PURCHASE FROM ANY CHINESE COMPANY. AGAIN. DISHONEST FRAUDS RIPPING AMERICANS OFF. HAVE HAD BAD EXPERIENCES WITH MANY OF THEM. ITEM SENT, NOT WHAT ORDERED, NOT AS ADVERTISED, DAMAGED, IF A TOY, ARRIVES HALF THE SIZE IN VIDEO, IF PERFORMED THINGS, ONE YOU RECEIVE DOES NOTHING. IF ADVVERTISED AS A “ LIFELIKE BABY DOLL” WHAT YOU WILL RECEIVE IS A NAKED, BALD, HARD PLASTIC, HALF THE SIZE PIECE OF JUNK. HAD TO FILE DISPUTES WITH CREDIT CARD BANKS TO GET REFUNDS. POSTAGE TO RETURN AN ITEM COSTS AS MUCH AS ITEM IS WORTH. DID A RETURN ONCE AND (2) MONTHS LATER GOT IT BACK AS UNDELIVERABLE YET HAD BEEN OPENED AND ALL PAPERWORK WAS MISSING. CREDIT CARD BANKS HAVED RECEIVED THOUSANDS IF DISPUTE REQUESTS FOR SAME REASONS. WHY HASN’T THE GOVERNMENT CRACKED DOWN ON CHINESE COMPANIES DOING ANY BUSINESS HERE.? AND EVEN SOME AMERICAN COMPANIES HAVE THERE WAREHOUSES IN CHINA AND THEIR NOT GOOD TO DEAL WITH EITHER AS THEY WILL NOT ACCEPT RETURNS, HAS TO BE SENT BACk TO THE WAREHOUSE. A LOT OF FACEBOOK ADS ARE CHINESE COMPANIES. FACEBOOK DOESN’T CARE JUST WANT THE MONEY. BEWARE.

  • Ray White says:

    Americans should NEVER buy stock from an enemy determined to destroy us!!! Americans should NEVER put money into China or any enemy nation>

  • Oleg Levin says:

    Smart American companies are seeking other suppliers in India, Thailand, Philippines, East Europe. IT is good apportunities for those countries.

  • Paul says:

    Absolutely agree! They are getting rich and powerfull stealing from us. They buy our real estate becoming landlords in the USA. What will happen to our kids? What country will look like in 20 years from now?

  • RAYMOND BLANKENSHIP says:

    ITS CONFUSING, I DON’T WANT TO HURT THE CHINESE PEOPLE BUT THEIR GOVERNMENT DOES NOT GIVE A DAM ABOUT THEM.

  • Betty says:

    United States should never had anything to do with CHINA! BLAME that on CLINTON and OBAMA! OBAMA THE TERRORIST ! GOD HOW STUPID DEAL WITH COMMUNIST! HELL OBAMA LET IN MUSLIMS TERRORISTS’! They have TRAINING CAMPS RIGHT HERE IN UNITED STATE’S! BACK STAVING GOING ON TO AMERICAN’S ! CHINA RELEASE VIRUS KILL OFF AMERICAN’S GERM WARFARE AND THEIR NOT DONE YET! AND YOUR POLITICIANS ARE LETTING THEM GET AWAY WITH IT! AND THEIR TAKING THEIR SWEET TIME TO GIVE YOU A SHOT 💉 FOR VIRUS! ALOT MORE AMERICAN’S WILL DIE 💀 POLITICIANS IN WASHINGTON D.C. MADE SURE THEY RECEIVE THEIR SHOTS’! SHOULD MAKE CHINA PAY FOR ALL THE DAMAGE AND LIVES LOST! THEIR LAUGHING 😆 AT UNITED STATES TAKING ADVANTAGE OF US! GUESS Its TRUE CHINA TAKE UNITED STATES OVER BY 2027 ! UNITED STATES BE COMMUNIST

  • Betty says:

    AGREE WITH EVERYBODY COMMENTS BUT POLITICIANS’ DON’T AGREE WITH AMERICAN’S!

  • Statesman Patriot says:

    Walmart used to advertise and proudly flaunt that 99% of their products were “Made in the USA” but now 99% of the products they sell are made in China!

  • ROBBERT A.ABADIE says:

    YOUR DAMNED RIGHT THE HELL WITH THOSE WORLD HATING SHITS. AND SOEAKING OF SHITS , I JUST COMMENT THIS TO ALL WHO WILL SEE IT. MITCH MCONNLE (YOU KNOW, THE BIGGEST ASS HOLE IN THE GOVERNMENT. HE HAS GOT TO BE THE DUMMEST POLITICIAN ON EARTH! HERE FIGHTING FOR OUR
    POLITICAL LIVES TO KEEP THE SENATE AND STUPID IDIOT BLOCKS THE $2000 STIMULAS CHECK
    BECAUSE HE THINKS IT TO MUCH MONEY.HE WAS ELECTED TO DO WHAT HIS CONSTITUENTS WANT DONE
    NOT WHAT THIS SCREW WANTS. THE FIGHT FOR THE SENATE IS ONLY 3 DAYS AWAY. YOU KNOW THE DEMS WILL GIVE US THE MONEY. SO THAT REPS MINDS IN GA HOW THEY WILL VOTE. YOU KNOW THE SAYING
    MONEY TALKS AND BULL SHIT WALKS.WELL THE BIGGEST BULL SHITTER SHOULD BE SENT WALKING.

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