China Telecom, China Mobile and China Unicom signs are seen during the China International Import Expo (CIIE) at the National Exhibition and Convention Center in Shanghai, China on November 5, 2018.
Aly Song | Reuters
The New York Stock Exchange will eventually remove three Chinese telecommunications giants from the list.
The exchange will remove US-traded shares of China Telecom, China Mobile and China Unicom from the Big Board, the NYSE announced on Wednesday.
Last week the NYSE announced it would delist its shares to comply with an executive order signed by President Donald Trump. The order was intended to prevent American companies and individuals from investing in companies that the government claimed to have helped the Chinese military.
That decision was reversed on Monday, causing great confusion. Treasury Secretary Steven Mnuchin told the exchange that he disagreed with the reversal, a senior administration official told CNBC’s Eamon Javers on Tuesday.
The NYSE said the second reversal was due to new guidance from the Treasury Department’s Office of Foreign Assets Control that as of Jan. 11, US individuals would be unable to conduct certain transactions with the three companies.
China Mobile’s shares fell 3.5% in premarket trading following the NYSE update. China Telecom lost more than 4% while China Unicom lost 1% in early trading.
Chinese officials criticized the NYSE’s original decision when a spokesman for the China Securities Regulatory Commission said Monday that the executive order “The actual situations of the relevant companies and the legitimate rights of global investors as well as the badly damaged market rules and regulations have been completely ignored. “
Trump issued the original order in November, and the administration had previously directed the Federal Retirement Thrift Investment Board not to invest in Chinese companies.
– With reporting by Christine Wang