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NYSE delistings 'political', impact 'limited': China securities regulator

China's securities regulator on Sunday said New York Stock Exchange (NYSE) plans to delist three Chinese telecom firms are "political" and that the impact will be "limited"

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US stock markets | chinese companies | US China

Reuters  |  SHANGHAI 

New York Stock Exchange. Photo: Reuters
New York Stock Exchange

SHANGHAI (Reuters) - China's securities regulator on Sunday said New York Stock Exchange (NYSE) plans to delist three Chinese telecom firms are "political" and that the impact will be "limited".

The NYSE on Thursday said it would delist China Mobile Ltd, China Unicom Hong Kong Ltd and China Telecom Corp Ltd following President Donald Trump's move in November to bar U.S. investment in 31 firms that Washington says are owned or controlled by the Chinese military.

The China Securities Regulatory Commission, in a question and answer posted on its official website, said the plans are "politically motivated".

The move "completely disregards the actual situation of the relevant and the legitimate rights and interests of global investors and severely undermines normal market rules and order," the Chinese regulator said.

The overall scale of the American Deposit Receipts listed by the three is small, it said, with a total market value of less than 20 billion yuan ($3.07 billion), or 2.2% of the total equity of the three firms.

"Even if delisted, the direct impact on the companies' development and market operation is quite limited," the regulator said.

China's commerce ministry said on Saturday it will take "necessary measures" to safeguard the interests of

China Mobile, China Unicom and China Telecom said they had not received notification from the NYSE of its delisting decision.

Shares in China Telecom fell as much as 5% and those of China Mobile 3.5% against a 0.46% rise in the Hang Seng Index.

In the final weeks before President-elect Joe Biden takes office on Jan. 20, the Trump administration has stepped up its hard-line stance against China.

Relations between the two biggest economies have come under increasing strain amid a series of disputes over issues such as trade and human rights.

The U.S. Commerce Department added dozens of to a trade blacklist in December, accusing Beijing of using them to harness civilian technology for military purposes.

Chinese diplomats have expressed hope that Biden's election will help ease tension between the two countries.

 

($1 = 6.5250 yuan)

 

(Reporting by Engen Tham, Wang Jing and Samuel Shen; Editing by Christopher Cushing)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, January 04 2021. 08:00 IST
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