Three major Chinese telcos said late last week that they will be delisted from the New York Stock Exchange (NYSE) after the latter denied their requests for appeal, Reuters reported.
The delisting comes in line with the U.S.’ Communist Chinese military companies (CCMC) under the National Defense Authorization Act of 1999, enacted by the former Trump Administration.
The CCMC designation bars any U.S. investors from purchasing any shares or stakes from companies that the government considers to be linked to the Chinese military.
The three telcos – China Mobile, China Unicom, and China Telecom Corp – had filed an appeal request to the NYSE to review their delisting as soon as U.S. President Joe Biden was sworn in as the 46th president back in January.
The telcos noted in separate statements last week, that they expect the NYSE to notify regulators of their delisting after the appeal was rejected.
According to Reuters, the companies had highlighted that the delisting will become effective ten days after the exchange files a Form 25 to the U.S. Securities and Exchange Commission.
The three telcos join the likes of Huawei and ZTE who have also been delisted – however, budget smartphone maker Xiaomi was able to escape the same fate after a U.S. federal judge rolled back the blacklisting on the company citing insufficient evidence that Xiaomi posed a national security threat.