Just a few short hours after Treasury Secretary Mnuchin "Disapprovingly" called NYSE President Stacey Cunningham, the exchange had flip-flopped back again and is now reconsidering its decision to halt the delisting of three major Chinese telecommunications firms.
China Mobile is down over 3% after hours but remains higher from NYSE's decision NOT to delist.... This whole debacle crushes any credibility the so-called 'esteemed' exchange had... and begs the question - why did they decide to back the Chinese military against their own government?
One day after a most bizarre flipflop by the NYSE which last Thursday - just hours before the new year - said it would suspend trading in Chinese telecom giants only to reverse itself late on Monday as if in concession to Beijing, Treasury Secretary Steven Mnuchin called NYSE President Stacey Cunningham on Tuesday to "Express his disapproval" with the exchange's surprise decision Bloomberg reported, citing two people familiar with the matter.
Another potential catalyst: the Treasury published a document Monday that offered "Clarifications" on the order hours before the exchange announced its decision to not delist the companies.
It is possible that the language was diluted enough to where the NYSE lawyers decided they would rather piss off Trump than China, and ignore the presidential E.O. Despite the temporary reprieve, the ongoing risk of being delisted means financial markets are likely to face further uncertainty about which companies might be affected by Trump's crackdown on China and when.
China Mobile, China Telecom and China Unicom all soared on Tuesday in Hong Kong trading, as investors concluded that the U.S. might be backing away from its aggressive approach.
The NYSE gave no reason for its decision in a statement released during Asian trading hours, saying only that it had consulted "Relevant regulatory authorities" about the U.S. restrictions on investing in Chinese companies.
Tuesday, January 5, 2021
NYSE Flip-Flops Again: Reconsiders Delisting China Telcos After "Disapproving" Call From Mnuchin
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