Three Chinese telecommunications companies will be excluded from trading on the New York Stock Exchange. China Mobile, China Telecom Corp and China Unicom Hong Kong. Until the last moment, it was not clear whether this would actually happen.
The US Department first demanded that these companies be removed from the Wall Street exchange, then changed its decision, but ultimately stayed with the original plan. It is the result of an executive order issued by Donald Trump banning Americans from investing in companies that Washington designates as tied to the Chinese military.
In response to the decision, the Hong Kong Stock Exchange reacted with a downturn. The country’s main Hang Seng index fell half a percent in Thursday trading, while the sub-index bringing together Chinese companies fell as much as 1 percent. Other Chinese technology firms such as Alibaba and Tencent could join the companies before Donald Trump’s term ends, reuters reported.
By contrast, the Tokyo Stock Exchange has climbed to a 30-year high in response to the outcome of the US Senate re-election. The Nikkei index added 1.6 percent, and investors were not started by the violence in Washington.