Chinese telecom firms seek review of NYSE delisting decision

FILE PHOTO: A man smokes in front of a China Unicom store in Beijing, China August 11, 2020. Picture taken August 11, 2020. REUTERS/Tingshu Wang/File Photo

(Reuters) – Telecom companies China Unicom Hong Kong Ltd, China Mobile and China Telecom Corp said on Thursday they had requested the New York Stock Exchange to review its decision to delist their American depositary shares.

The NYSE – after some flip-flopping – had delisted the three Chinese telcos earlier this month, following an executive order by former U.S. President Donald Trump that barred Americans from investing in public companies Washington deems to have links with the Chinese military.

The U.S. investment ban has triggered a wider fallout for the companies, with U.S. investors quickly selling off their stakes and index providers cutting them from their benchmarks.

Index providers MSCI Inc, FTSE Russell and S&P Dow Jones Indices removed the telcos from benchmarks this month, wiping a combined $5.6 billion off the value of their Hong Kong-traded shares.

The companies said the NYSE’s review would be scheduled within 25 days from their filing on Wednesday, and requested that trading suspension on the telcos stay in place until the outcome is finalised.

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