Treasury Secretary Mnuchin Gets Into Chinese Delisting Saga on NYSE: Report

The New York Stock Exchange It is reportedly reconsidering its decision to write off China Telecom Corporation Ltd. And China Mobile Ltd. And China Unicom Ltd. Treasury Secretary Stephen MnuchinAccording to a report, he contacted New York Stock Exchange President Stacy Cunningham on Tuesday to say he disagreed with the exchange’s decision to reverse course.

The New York Stock Exchange announced for the first time that it “no longer intends to proceed with the delisting procedure” in A. statement On Monday, citing „further consultations“ with US regulators.

The move came just days after the New York Stock Exchange announced it The securities delisting process of the three major Chinese telecom companies began Thursday In response to the Executive order By President Trump in November, which prohibits „any transaction in publicly traded securities, or any derivative securities, or designed to provide an investment exposure to such securities, to any Chinese Communist military company.“

A spokesman for the New York Stock Exchange, which is owned by parent company Intercontinental Exchange, declined to comment. A Mnuchin representative did not immediately respond to FOX Business‘ request for comment.

ribbon Safety the last They change They change%
ice INTERCONTINENTAL EXCHANGE INC. 113.54 +0.24 + 0.21%

NYSE reverse cycle, will not delete Chinese contacts

The exchange intends to suspend trading Stores Sometime between January 7th and January 11th.

The Stock Exchange also indicated in the delisting announcement that exporters „have the right to review this decision by a committee of the Exchange’s Board of Directors“ and that it will implement the decision upon completion of all applicable procedures, including „any appeal of the decision of NYSE Regulation employees“.

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China warns of retaliation over the New York Stock Exchange delisting of companies

Three sources familiar with the matter told Bloomberg that the initial decision to write off the top three telecom operators in China was intended to comply with President Trump’s order, but that the exchange decided to change course when it became unclear that the companies were actually being banned. The sources added that in the event that the exchange receives confirmation from the government about the ban, it will proceed.

Treasury Department She issued the instructions on her website On Monday, he provided clarification on the matter hours before the stock exchange announced its decision not to write off the companies, which it said “does not require US people, including US funds, brokers, and related market participants, to withdraw their holdings in publicly traded securities and securities. Derived from, or designed to provide an investment exposure to these securities) to specific Chinese Communist military companies.

One source reportedly said that the Treasury Department may provide additional clarification through the OFAC.

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The Chinese were sharply critical of the share write-off move, as the country’s Securities Regulatory Commission argued over A. statement Friday that the executive order was „based on political purposes“ and that it „completely ignored the actual positions of the relevant companies and the legitimate rights of global investors, and severely damaged market and order rules.“

A Chinese Ministry of Commerce spokesman added in a statement on Saturday that China „opposes Americans from abusing national security by including Chinese companies in the so-called“ Communist Chinese military companies „list, and that it will take“ necessary countermeasures to firmly protect the legitimate rights and interests of Chinese companies. „

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In addition, the ministry’s statement said the measures „will significantly weaken the confidence of all parties in the US capital market.“

The ministry did not provide details on what the countermeasures would be.

ribbon Safety the last They change They change%
No Chinese Telecom 28.34 +2.30 + 8.83%
CHL China Mobile Limited. 29.34 +2.46 + 9.15%
CHU China Unicom Ltd. 6.15 +0.65 + 11.82%

China Telecom Co., Ltd., China Mobile Co., Ltd. and China Unicom Co., Ltd. closed higher on Tuesday.

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Under Trump, the United States has stepped up economic sanctions and travel bans against Chinese companies, government officials, and Communist Party members, especially in the past few weeks for Trump in office.

In December, the United States announced plans to limit visas to members of the Chinese Communist Party and their family members for one month, instead of 10 years.

The Chinese tech giant Huawei has been excluded from the US market, and the United States has pressured other countries to follow suit, albeit with mixed results.

The Associated Press contributed to this report

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