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S&P Dow Jones to remove ADRs of Chinese telecom firms after NYSE decision

S&P Dow Jones Indices said it will remove the American Depositary Receipts of three Chinese telecom companies, China Mobile, China Telecom Corporation and China Unicom (Hong Kong), from its benchmarks

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S&P Dow Jones | US stock markets | chinese companies

Reuters 

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US Wall Street

By Kanishka Singh and Bhargav Acharya

(Reuters) - Indices said on Wednesday it will remove the American Depositary Receipts of three Chinese telecom companies, China Mobile Ltd, China Telecom Corporation Ltd and China Unicom (Hong Kong) Ltd, from its benchmarks.

"S&P DJI's announcement to move forward with removing the above-referenced ADRs from its indices is due to the New York Stock Exchange's (NYSE's) latest confirmation that the ADRs will be delisted," it said in an emailed statement.

The NYSE said on Wednesday it will delist the three effective Jan. 11, confirming its latest reversal on the matter a day after U.S. Treasury Secretary Steve Mnuchin told the NYSE chief he disagreed with an earlier decision to reverse the delistings.

The flip-flopping highlights the confusion over which firms were included in an executive order issued by President Donald Trump in November barring U.S. persons from investing in publicly traded Washington deems to be tied to the Chinese military.

Investors had sold positions in the securities after the NYSE first announced plans last week to delist China Mobile, China Telecom and China Unicom. But the shares rose after NYSE said it would not do so and tumbled again after the latest about-face.

Less than 24 hours before its latest announcement, Indices too had said it would not remove the ADRs of the firms, in line with NYSE's decision at the time.

Hong Kong shares of China Unicom led losses among the three China telecom stocks to be delisted by NYSE at the start of trading in Asia, down as much as 9.4%.

China Mobile shares were down as much as 6.8%, and China Telecom Corp shares dropped 5.8%.

 

(Reporting by Kanishka Singh and Bhargav Acharya in Bengaluru; Editing by Himani Sarkar)

(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: Thu, January 07 2021. 10:16 IST
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