Flip Flop
A little while back the NYSE was considering delisting Chinese stocks from the exchange, more recently however, it appears the NYSE has changed their mind. The initial move to delist came from an effort from President Trump to be tougher on China by placing a ban that would apply to subsidiaries in which blacklisted Chinese companies owned a majority stake.
This specific quota would encompass three NYSE-listed telecom firms, despite this however, there seems to be some confusion on both sides as the NYSE has put the decision on hold and has more recently reverted it. Specifically, one section of the order legally requires 60 days as well as an exact mention of the stocks that need to be delisted, something that was not done.
Many investors are likely feeling some regret right about now, as one individual investor reported to the Wall Street Journal and I quote “he had taken a major loss on shares in China Mobile because of the NYSE’s original decision to delist the company. He was holding the shares in hopes that Mr. Biden would ultimately reverse Mr. Trump’s order but decided to sell after his brokerage notified him that investors could have trouble liquidating the shares, the investor said. That notification prompted him to sell the shares at a loss just before the NYSE reversed its decision.” How do you think this will continue to playout with the new Biden administration coming in?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
