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| China accuses the United States of violating market rules |
China described the US government order to remove three Chinese telecom companies from the New York Stock Exchange as politically motivated and violate market rules, and called for respect for the rule of law and protection of the global financial market system.
Outgoing US President Donald Trump issued an Executive Order in November last year banning all commercial and investment activities, including companies that were previously viewed by the US Department of Defense as a Chinese military company of the Communist Party.
Sixty days after the US established such a designation, Trump's mandate prohibits all new corporate transactions.
The ban is expected to begin on January 11 and will affect three companies listed on the New York Stock Exchange, namely China Telecom, China Mobile and China Unicom.
In response, the China Securities Regulatory Commission said that delisting China Telecom ignored the legal rights of global investors and severely damaged the market system.
According to a spokesperson for the committee, the state-run China Daily Media Organization said: These three Chinese companies received US certificates of deposit and were listed on the New York Stock Exchange for more than 20 years.
Telecom companies also adhere to the rules and regulations of the American Stock Exchange.
A spokesperson for the China Securities Regulatory Commission added that the cancellation was a political charge and a serious violation of market rules and orders.
He said: Some American politicians tried to suppress foreign companies listed in the United States in order to harm the global position of the American financial markets, describing these actions as random, arbitrary and reckless.
However, the spokesperson said that given the two companies' large user base, their current businesses, the influence on the global telecom industry, and the small percentage of US depository receipts in their stakes, delisting generally will have an effect. The operating impact of the three Chinese telecom operators is very limited.
He added that the authorities are helping the three companies protect their rights and interests. "We hope that while respecting the market and the rule of law, the United States will also make efforts to protect the global financial market system, protect the legal rights of investors, and promote stable development," the spokesman said. The global economy is working harder.
An official from the China Banking and Insurance Authority urged the stability of Sino-US relations in line with the expectations of the international community.
He expressed the hope that the US government would meet with China and abide by the spirit of non-confrontation, mutual respect and win-win cooperation, in order to promote the healthy development of relations and maintain the stability of the international financial market.