The New York Stock Exchange (NYSE) has reversed its decision to delist the three major Chinese telecommunication corporations, including China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU), after consulting with the Office of Foreign Assets Control (OFAC).
The original basis for delisting the companies stemmed from an executive order signed the previous week, banning US investment in Chinese firms that have ties with the People's Liberation Army.
Shares of the three telecoms have responded with price increases of 7-13% after the Exchange announced its turnaround. This can be mostly attributed to funds having to buy back shares they had previously sold.
Even though these events could be interpreted as relaxation of tensions, Investors can expect increased volatility regarding Chinese stocks in the coming weeks. In the final days of President Trump’s administration, human rights concerns and recent antitrust investigations of the CCP related to the allegedly missing Alibaba (BABA) founder Jack Ma, among other factors, enhance ambiguity.