Will they? Won’t they? What’s the deal with the New York Stock Exchange and Chinese telecom stock listings? The exchange said Wednesday it will remove the U.S.-traded shares of China Telecom (NYSE:CHA), China Mobile (NYSE:CHL) and China Unicom (NYSE:CHU).
No one would blame you for scratching your head on this one. The Big Board last week announced it would delist the three stocks to comply with an executive order signed by President Donald Trump. The order was a move to bar American entities and individuals from investing in companies that the administration believe aid China’s military.
Then, on Monday, the NYSE reversed that decision, leading to gains in all three stocks but sparking uncomfortable conversations between the exchange and the Treasury department. Ultimately, the Big Board concurred with the Treasury’s Office of Foreign Assets Control, which will enforce the ban as of Jan. 11.
What to Do Now With Chinese Telecom Stocks?
If you’re holding these Chinese telecom stocks, you may want to just sit tight. With less than three weeks left for the Trump Administration, it’s possible that the executive order could be reversed early on in President-elect Joe Biden’s first days in office.
Most experts agree that a Democrat-controlled Congress and White House will not bode well for the largest and most-dominant U.S. companies in the information technology industry. That adversarial attitude could fuel increased interest in Chinese tech stocks, with the three mentioned above.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.
