"One Call from Mnuchin... New York Stock Exchange Reconsiders Delisting Chinese Telecom Company"

NYSE Decides Not to Delist Chinese Telecom Company as of Previous Day
"Mnuchin Conveys Opposition to This Position via Phone"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Bloomberg News, citing multiple sources, reported on the 5th (local time) that the New York Stock Exchange (NYSE) is reconsidering delisting the three major Chinese telecom companies just one day after retracting the delisting decision. Since former U.S. President Donald Trump issued the removal order last November, the NYSE has reversed its stance several times within a week, causing confusion in the financial markets.

According to the report, the sudden reconsideration of the delisting by the NYSE appears to have been prompted by a phone call from U.S. Treasury Secretary Steven Mnuchin. On that day, Mnuchin reportedly called NYSE CEO Stacey Cunningham to express opposition to the reversal of the initial delisting decision regarding China Mobile, China Telecom, and China Unicom.

Bloomberg added that the U.S. administration's response involved White House Chief of Staff Mark Meadows, National Security Council (NSC) Advisor Robert O'Brien, and White House National Economic Council Chairman Larry Kudlow. Sources said that after the NYSE decided to delist in compliance with the executive order, doubts arose about whether the companies were indeed subject to the ban, leading to the withdrawal of the decision within four days. They indicated that if the government confirms the companies as banned entities, the NYSE will proceed with the delisting.

Earlier, the NYSE announced on the 31st of last month that it would delist China Mobile, China Telecom, and China Unicom between the 7th and 11th of this month. However, disagreements arose over whether these companies fall under the Trump administration's executive order banning U.S. investments in companies linked to the Chinese military. The State Department and Department of Defense judged them to be banned, but the Treasury Department saw room for interpretation.

Consequently, the NYSE announced the day before yesterday, just four days after the delisting announcement, that after further consultations with relevant departments, it would not delist the three companies. The specific reasons for reversing the delisting decision were not disclosed at that time. However, just one day later, Secretary Mnuchin expressed opposition, and news emerged that the NYSE is reconsidering the reversal of the delisting.

Bloomberg pointed out that the NYSE's inconsistent actions are causing turmoil in the financial markets amid a series of policies, including the executive order banning investments in companies linked to the Chinese military issued last November. This order is scheduled to take effect on the 11th, before President Trump leaves office.

This content was produced with the assistance of AI translation services.