The China Securities Regulatory Commission said the delisting of three Chinese telecoms ignored the “legitimate rights” of global investors and “severely disrupted” market order after the New York Stock Exchange said it would delist China Telecom, China Mobile, and China Unicom Hong Kong under an executive order from U.S. President Donald Trump.
In November, the Trump administration issued the order banning investment in publicly traded companies that the U.S. government says are owned or controlled by the Chinese military, citing the country’s “national strategy of military-civil fusion.”
The ban is slated to go into effect on January 11. The NYSE said trading in the companies would be suspended sometime between January 7 and January 11.
“We hope the U.S. sides will respect the market and the rule of law and do more to protect the order of the global financial market, safeguard investors’ lawful rights and interests, and promote the steady development of the world economy,” a spokesperson for the CSRC said.
Meanwhile, in a statement, a spokesperson for the Chinese Commerce Ministry said the country would take steps in response to the ban, which it said would “greatly weaken all parties’ confidence” in U.S. capital markets.
“China opposes the Americans from abusing national security by listing Chinese companies into the so-called ‘Communist China Military Companies’ list and will take the necessary countermeasures to resolutely safeguard the legitimate rights and interests of Chinese companies,” the spokesperson said.
The Trump administration has taken a number of actions against Chinese companies and the country’s military. Earlier this month it announced it was limiting visas for members of the Chinese Communist Party and their family members, but President-elect Joe Biden has signaled a different tone.
As of October, some 217 Chinese companies were listed on the three largest exchanges in the U.S., with a total market value of $2.2 trillion.