The Chinese government commented on the decision of the United States (US) Wall Street stock exchange. US expelled three companies from China from NYSE.
Quoting CNBC International, China’s Ministry of Trade was disappointed with the move. Beijing has alleged that this move will irritate some investors. Including US investors themselves.
“(The US) is abusing national security and using state power to crack down on Chinese companies,” the ministry said, quoting CNBC, Monday (4/1/2020).
“This is inconsistent with market rules and logic, which not only harm rights- legal rights of Chinese companies, but also the interests of investors in other countries, including the US. ”
Quoting the Global Times, China promised to take firm steps to protect the interests of its state companies. However, China also added that it hopes that business relations between the two countries can be fair and can benefit many parties.
Beijing: Hopefully the US-China can work together in a stable and fair business environment.
“We will take the necessary measures to strictly protect the legitimate rights and interests of Chinese companies,” the ministry said.
“We hope that the US and China will work together to create a fair, stable and predictable business environment for companies and investors. So that bilateral economic and trade relations get back on track.”
Earlier, on December 31, the NYSE decided to expel the three listed companies from China who were on the stock exchange. This is a continuation of the blacklist by President Donald Trump to several companies from China.
The NYSE said on Thursday (31/12/2020) that it will remove China Telecom Corp. Limited, China Mobile Limited, and China Unicom Hong Kong Limited.
Trump signed an order in November prohibiting US citizens from investing in 35 companies allegedly linked to China’s military development. This includes these three companies and 32 other large companies such as Huawei and CNOOC.
The investment ban will take effect on January 11, just days before President-elect Joe Biden will be sworn in. According to the NYSE, trading of the three companies is likely to be halted as early as January 7. Or no later than January 11.
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