Beijing (PingWest)- S&P Dow Jones Indices said on Wednesday it will press ahead with the plan to remove the American Depositary Receipts of three Chinese telecom companies, China Mobile Ltd, China Telecom Corporation Ltd and China Unicom (Hong Kong) Ltd, from its benchmarks.
The decision was being made shortly after the New York Stock Exchange (NYSE) decided to keep its original plan to delist three Chinese telecom companies.
“S&P DJI’s announcement to move forward with removing the ADRs of three Chinese telecom companies from its indices is due to the New York Stock Exchange’s (NYSE’s) latest confirmation that the ADRs will be delisted,” it said in a statement.
The NYSE said on Wednesday it will keep the original plan to delist the three Chinese companies, explaining the latest decision came after it received new guidance from Treasury Department’s Office of Foreign Assets Control, which insisted on delisting three Chinese firms as part of Trump administration’s order.
On Monday, NYSE reverse the delisting plan that was announced last week and said it will not delist three Chinese telecom companies.
A source said the NYSE reversal on Monday due to ambiguity in whether the three companies were covered by the order, but the new guidance, which Treasury urged the exchange to follow late Tuesday, made it clear that the Chinese companies must be delisted.
China’s securities regulators vowed support for the country’s three major telecom operators to safeguard their interests according to law after the New York Stock Exchange (NYSE) announced it would delist China Mobile, China Unicom Hong Kong and China Telecom
The Chinese regulator said the direct impact on the companies’ development and market operation is quite limited given the insufficient liquidity, low-volume trading of companies’ shares on NYSE.