The New York Stock Exchange has withdrawn its decision to delist three Chinese state-owned phone carriers, according to a statement released Monday evening.
“In light of further consultation with relevant regulatory authorities in connection with Office of Foreign Assets Control FAQ 857, [the NYSE] announced today that NYSE Regulation no longer intends to move forward with the delisting action,” the Intercontinental Exchange said. “The Issuers will continue to be listed and traded on the NYSE. NYSE Regulation will continue to evaluate the applicability of Executive Order 13959 to these Issuers and their continued listing status.”
In a reversal of plans released four days earlier, the NYSE said China Telecom Corporation Limited, China Mobile Limited, and China Unicom (Hong Kong) Limited may continue to trade shares.
The original decision to delist the three state-run telecommunications giants was announced after President Trump’s Executive Order 13959, “Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies,” on Nov. 12.
The order found that the “People’s Republic of China (PRC) is increasingly exploiting United States capital” for “development and modernization of its military, intelligence, and other security apparatuses.” It prohibited “any transaction in publicly traded securities” on the part of any Chinese Communist Party military company.
On the eve of the Georgia Senate runoffs, the NYSE’s announcement sets up elected officials for a potentially awkward showdown. Sen. Kelly Loeffler, who will be defending her seat in one of the twin races taking place on Tuesday, is married to Jeffrey Sprecher, the chairman of the NYSE.
Trump has actively campaigned on behalf of Loeffler’s reelection bid. In a Monday night rally in support of the incumbent, the president made clear that the stakes in the contest are high.
“If you want to send a message to the powerful forces that are trying to control your country, you must get out and vote tomorrow for David Perdue and Kelly Loeffler,” he told a roaring crowd in Dalton.
Loeffler, Sprecher, and Trump have not commented on the NYSE’s decision at this time.
