The Trump administration’s determination to limit US investment in China meant Chinese company delistings from US markets were inevitable. Still, the speed at which things are moving is a surprise.
The New York Stock Exchange has already begun the delisting process for China’s three largest state-run telecom operators. Trading in China Mobile, China Unicom and China Telecom will be suspended as early as this week.
The trio made it on to the Pentagon’s list of companies suspected of having Chinese military ties last year. It was reasonable for investors to expect action to be relatively slow paced. Regulations that require Chinese companies listed in the US to follow US audit disclosure requirements give the companies until next year to comply.