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CHU

China Unicom (Hong Kong) Ltd New York Stock Exchange
$7.3
Open: $0.00 High: $0.00 Low: $0.00 Close: $0.00
Range: 0 - 0
Volume: 0
Market: Closed
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CHU
China Unicom (Hong Kong) Ltd 99 Queen's Road Hong Kong , http://www.chinaunicom.com.hk
China Unicom (Hong Kong) Ltd provides cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, and business and data communications services in the People's Republic of China.
  • CEO: Xiaochu Wang
  • Employees: 267,590
  • Sector: Communication Services
  • Industry: Communication Services
CHU News
Latest news about the CHU
  • Forget 5G, the U.S. and China Are Already Fighting for 6G Dominance

    (Bloomberg) -- Most of the world is yet to experience the benefits of a 5G network, but the geopolitical race for the next big thing in telecommunications technology is already heating up.For companies and governments, the stakes couldn’t be higher. The first to develop and patent 6G will be the biggest winners in what some call the next industrial revolution. Though still at least a decade away from becoming reality, 6G — which could be up to 100 times faster than the peak speed of 5G — could deliver the kind of technology that’s long been the stuff of science fiction, from real-time holograms to flying taxis and internet-connected human bodies and brains.The scrum for 6G is already intensifying even as it remains a theoretical proposition, and underscores how geopolitics is fueling technological rivalries, particularly between the U.S. and China.“This endeavor is so important that it’s become an arms race to some extent,” said Peter Vetter, head of access and devices at Nokia Oyj’s research arm Bell Labs. “It will require an army of researchers on it to remain competitive.”Years of acrimony under the Trump administration have hit Chinese technology companies hard, but that hasn’t stopped the country from emerging as the leader in 5G. It has the world’s largest 5G footprint, and — despite multiple attempts by the U.S. to take it on — Huawei Technologies Co. towers over rival 5G vendors globally, mostly by offering attractive prices.The development of 6G could give the U.S. the opportunity to regain lost ground in wireless technology.“Unlike 5G, North America will not let the opportunity for a generational leadership slide by so easily this time,” said Vikrant Gandhi, senior industry director of information and communications technologies at consultancy firm Frost & Sullivan in the U.S. “It is likely that the competition for 6G leadership will be fiercer than that for 5G.”It’s clear that 6G is already on the minds of policy makers in both Washington and Beijing. Former President Donald Trump tweeted in early 2019, for example, that he wanted 6G “as soon as possible.”China is already moving ahead. The country launched a satellite in November to test airwaves for potential 6G transmission, and Huawei has a 6G research center in Canada, according to Canadian media reports. Telecommunications equipment manufacturer ZTE Corp. has also teamed up with China Unicom Hong Kong Ltd. to develop the technology.The U.S. has demonstrated that it has the ability to seriously handicap Chinese companies, as in the case of ZTE, which almost collapsed after the Commerce Department banned it for three months in 2018 from buying American technology. Similar moves could hamper Huawei’s 6G ambitions.Washington has already started to sketch out the 6G battle lines. The Alliance for Telecommunications Industry Solutions, a U.S. telecom standards developer known as ATIS, launched the Next G Alliance in October to “advance North American leadership in 6G.” The alliance’s members include technology giants like Apple Inc., AT&T Inc., Qualcomm Inc., Google and Samsung Electronics Co., but not Huawei.The alliance mirrors the way that the world has been fractured into opposing camps as a result of 5G rivalry. Led by the U.S, which identified Huawei as an espionage risk — an allegation the Chinese giant denies — countries including Japan, Australia, Sweden and the U.K. have shut the firm out of their 5G networks. However, Huawei is welcomed in Russia, the Philippines, Thailand, and other countries in Africa and the Middle East.The European Union in December also unveiled a 6G wireless project led by Nokia, which includes companies like Ericsson AB and Telefonica SA, as well as universities.The lack of trust in Chinese companies like Huawei is unlikely to abate with 6G. Democracies are growing increasingly worried about how 5G technology is being used by authoritarian regimes, with fears that 6G could enable technologies such as mass drone surveillance. China is already using surveillance cameras, AI, facial recognition and biometrics such as voice samples and DNA to track and control citizens.“Currently China seems to be doing everything in terms of surveillance and suppression to make sure that they lose future markets in the U.S. and Europe,” said Paul Timmers, a senior adviser at Brussels-based think tank European Policy Centre and former director of digital society and cybersecurity at the European Commission. “This indicates that the technical approach to 6G cannot be trusted to be decoupled from state ideological objectives.”While commercial 5G was introduced around 2019, countries are still rolling out networks and developing applications that could attract businesses and turn the technology profitable. Likewise, 6G may not reach its potential at least 15 years from now, said Gandhi of Frost & Sullivan. Only about 100 wireless carriers worldwide offer 5G services in limited areas right now.But researchers have an ambitious vision for what the next-generation network could offer. At a potential rate of 1 terabyte per second, 6G is not only much faster, but also promises a latency — which causes lags — of 0.1 millisecond, compared to 1 millisecond, or the minimum for 5G. To achieve that, scientists are focusing on the super high frequency terahertz waves that could meet those speed and latency requirements, though there is not yet a chip capable of transmitting so much data in a second.It still remains too early to tell whether the envisioned futuristic world defined by 6G will eventually materialize. In that theoretical world, everything in our environment will be connected to the 6G networks — not only can people communicate with things like furniture and clothes, but those gadgets can also communicate among themselves.Major scientific obstacles abound — for example, researchers must solve the question of how airwaves traveling extremely short distances can easily penetrate materials such as water vapor or even a sheet of paper. Networks may need to be ultra-dense, with multiple base stations installed not only on every street, but also in each building or even each device people use to receive and transmit signals. That’s set to raise serious questions over health, privacy and urban design.“Technological advances, especially those as futuristic and complex such as 6G radio communication should be developed carefully,” said Gandhi. “We believe that countries cannot start soon enough. The private sector cannot start soon enough. And that is why we already have initiatives such as the Next G Alliance.” For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • Chinese Telecom Companies Ask NYSE to Reverse Delisting Plan

    • The Chinese telecom companies that the New York Stock Exchange is set to delist have asked for that decision to be reconsidered, according to regulatory filings submitted Thursday. In the waning weeks of the Trump administration, the NYSE said they planned to delist the companies’ shares due to an executive order barring Americans from investing in companies that do business with the Chinese military. • The Chinese government has hit 28 Trump administration officials, including former Secretary of State Mike Pompeo, with sanctions.

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  • U.S. Blacklists Xiaomi in Widening Assault on China Tech

    (Bloomberg) -- Xiaomi Corp. plunged a record 10% after the Trump administration blacklisted China’s No. 2 smartphone maker and 10 other companies, broadening efforts to undercut the expansion of the country’s technology sector.The U.S. has targeted scores of Chinese companies for the stated purpose of protecting national security, but going after Xiaomi was unexpected. The Beijing-based company has been viewed as China’s answer to Apple Inc., producing sleek smartphones that draw loyal fans with each new release. The company, which vies with Huawei Technologies Co. for the title of China’s No. 1 mobile device brand, also makes electric scooters, earphones and smart rice cookers.The news was “really surprising to me,” said Kevin Chen, a Hong Kong-based analyst at China Merchants Securities Co.The U.S. Defense Dept. identified Xiaomi as one of nine companies with alleged ties to the Chinese military -- which means American investors will be prohibited from buying their securities and will have to divest holdings by November.Other firms targeted include Luokong Technology Corp., Gowin Semiconductor Corp., Global Tone Communication Technology Co. and Advanced Micro-Fabrication Equipment Inc. Index stalwarts such as China’s three biggest telecom firms are already on the list.Xiaomi said in a statement it is not owned or controlled by the Chinese military, adding that it would take appropriate actions to protect its interests.Unless the ban is reversed, the smartphone maker risks being delisted from U.S. exchanges and deleted from global benchmark indexes. China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. were removed by MSCI Inc. last week.The Trump administration’s blacklistings have focused on Chinese companies with military ties and strategic value to the industry’s growth. Semiconductor Manufacturing International Corp., China’s largest chipmaker and critical to the country’s ability to build a self-sufficient tech industry, was included in December.Xiaomi was co-founded by billionaire entrepreneur Lei Jun about 10 years ago, with U.S. chipmaker Qualcomm Inc. as one of the earliest investors. It’s since expanded well beyond China’s borders, particularly into Europe and India, becoming one of the country’s more recognizable brands. It surpassed Apple in global smartphone sales in the third quarter, according to the International Data Corporation, and joined Hong Kong’s benchmark Hang Seng Index in September.The move sent Xiaomi suppliers south on Friday: FIH Mobile Ltd., which helps it assemble smartphones, plunged almost 14% after a strong rally in recent days. Component suppliers including Largan Precision Co., Sunny Optical Technology Group Co. and AAC Technologies Holdings Inc. also fell. Spreads on Xiaomi’s dollar bonds widened as much as 60 basis points Friday, according to credit traders.Read more: Xiaomi’s Market Value Tops $100 Billion, Reaching 2018 IPO GoalSeparately, the U.S. Commerce Dept. blacklisted China’s No. 3 oil company, China National Offshore Oil Corp., and Skyrizon, which develops military equipment. The Commerce designation is more severe and prohibits American firms from supplying those entities.Investors may be concerned that Xiaomi could be targeted by Commerce in the future, after the Defense Dept.’s move. Huawei was forced to sell off its Honor smartphone business after it was cut off from American suppliers, including Android-developer Google.“The risk looks high” that Xiaomi could get added to the broader Entity List, Jefferies analyst Edison Lee wrote Friday. That “would significantly impact its ability to procure components to make smartphones.”Trump’s increasingly aggressive stance towards Chinese corporations has provoked Beijing, which views the litany of U.S. actions as a threat. The government this month issued new rules to protect its firms from “unjustified” foreign laws and previously talked about creating its own Unreliable Entities list, though no concrete retaliation has emerged.Despite Friday’s selloff, some investors held out hope that the incoming U.S. administration will reverse actions taken in the twilight days of Donald Trump’s presidency.“This is not going to be a priority for the Biden administration. This ruling will be reversed before November, so we are going to hold, and not just hold but be a buyer on this weakness,” Vanessa Martinez, a partner at Lerner Group, told Bloomberg TV. “This is just like that last parting shot against China by the Trump administration.”Chen of China Merchants Securities also argued the fallout for Xiaomi may be limited.“Many investors would choose to lock in profit since the stock rallied a lot in the past year,” he said. “But I think the impact on Xiaomi would be more sentimental than fundamental. These declines could be short-lived.”(Updates with analyst’s comment in the 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • U.S. Targets Xiaomi, Cnooc in Trump’s Late Anti-China Push

    (Bloomberg) -- The Trump administration blacklisted Chinese smartphone manufacturer Xiaomi Corp. for alleged military links along with the country’s third-biggest oil company over its drilling in the South China Sea, part of a final push to ratchet up pressure on Beijing before President-elect Joe Biden takes office.Xiaomi was one of nine firms added to the Defense Department’s list of Chinese military companies, a move that will restrict U.S. investments in its securities. Other firms include state-owned planemaker Commercial Aircraft Corp. of China Ltd., or Comac, which is central to China’s goal of creating a narrow-body plane that can compete with Boeing Co. and Airbus SE.Meanwhile, the Commerce Department’s move against China National Offshore Oil Corp., the nation’s main deepwater explorer, denies it access to U.S. technologies without specific permission. It follows a December decision to blacklist more than 60 other Chinese companies.Read more: U.S. Blacklists Xiaomi in Widening Push Against China Technology“This measure by the Trump administration once again demonstrates to the public, to the international community, what is unilateralism, double standards and bullying,” China Foreign Ministry spokesman Zhao Lijian told a briefing in Beijing on Friday. “The Chinese side will take necessary measures to ensure the legitimate and lawful rights and interests of Chinese companies, and we will stand by our companies, to protect, to uphold their rights and interests in accordance with law.”Spokespeople for Xiaomi, Cnooc and Comac had no immediate comment. China National Aviation, named on the Pentagon list, didn’t immediately respond to a request for comment.The new raft of curbs mark a late push by President Donald Trump to ensure his pressure campaign against China stays in place long after he leaves office next week. While Biden and many Democrats say they oppose Trump’s tactics on China, the restrictions will give the new president increased leverage over Beijing when his team negotiates on trade with leaders of the world’s second-largest economy.Biden’s PledgeBiden has pledged to work with allies to develop a more coherent strategy against China, though it’s not clear whether there’ll be any immediate shifts in policy. Under an executive order signed by Trump last year targeting what it calls China’s abusive business practices, U.S. investors will need to unwind stakes in designated companies by November.Read more: Biden Will Inherit a Strong Hand Against Xi, Thanks to TrumpXiaomi surpassed Apple Inc. in smartphone sales in the third quarter, according to the International Data Corporation. It joined Hong Kong’s Hang Seng Index in September after grabbing market share from Huawei Technologies Co. as U.S. sanctions on Huawei deepened.Unless the ban against Xiaomi is reversed, the smartphone maker risks being delisted from U.S. exchanges and deleted from global benchmark indexes. China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. were removed by MSCI Inc. last week, while S&P Dow Jones Indices will drop Cnooc from its gauges next month.Xiaomi shares closed 10% lower in Hong Kong, while its suppliers also tumbled. FIH Mobile Ltd., which helps it assemble smartphones, plunged 14%. Component suppliers including Largan Precision Co., Sunny Optical Technology Group Co. and AAC Technologies Holdings Inc. also fell. Spreads on Xiaomi’s dollar bonds widened as much as 40 basis points Friday morning, according to credit traders.Cnooc’s listed unit, Cnooc Ltd., fell 1.1% in Hong Kong. Cnooc is the smallest of China’s so-called big three state-owned oil majors after China National Petroleum Corp. and China Petrochemical Corp., also known as Sinopec. The company’s operations in the South China Sea have proved controversial with neighbors because China claims drilling rights in waters far from its borders, and within 200 miles of countries like Vietnam and the Philippines.“China’s reckless and belligerent actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for its militarization efforts are a threat to U.S. national security,” Commerce Secretary Wilbur Ross said in a statement. “Cnooc acts as a bully for the People’s Liberation Army to intimidate China’s neighbors, and the Chinese military continues to benefit from government civil-military fusion policies for malign purposes.”The ListsThe Trump administration has now listed 44 Chinese companies effectively owned by the People’s Liberation Army under a 1999 law, which authorizes the president to potentially impose sanctions on them. Trump signed an order in November barring American investments in Chinese firms owned or controlled by the military in a bid to pressure Beijing over what it views as abusive business practices.The Department of Commerce’s blacklist, which was created last year to highlight restrictions on more than 100 businesses connected to China, Venezuela and Russia, is more severe and prohibits American firms from supplying those entities without a license.It was not immediately clear why Cnooc had been added now after it was not included in earlier listings. The ban also doesn’t apply to sales of hydrocarbons such as crude oil and also wouldn’t affect joint ventures between Cnooc and Western companies, a senior administration official, speaking on customary condition of anonymity, told reporters in a briefing Thursday.Subsidiaries of Cnooc have stakes in two U.S. shale oil and gas projects, according to Daiwa Capital Markets Hong Kong Ltd. The company also has interests in two offshore projects in the U.S. Gulf of Mexico, which are being developed alongside partners including Royal Dutch Shell Plc and Hess Corp.Other ApplicationsVarious components used in oil drilling can also have military applications, making it unsurprising that Cnooc had been targeted, said Amy Myers Jaffe, a senior fellow for energy at the Council on Foreign Relations. “It’s a hassle for Cnooc, but China has its own oil service industry and offshore industry. It’s probably not as devastating as a company that would lose access to microchips,” she said.Cnooc has been at the center of territorial disputes since 2012, when it invited foreign drillers to explore blocks off Vietnam that Hanoi’s leaders had already awarded to companies including Exxon Mobil Corp. and OAO Gazprom.Aerospace company Comac, key to China’s ambitions to deliver locally-made jets to domestic and foreign carriers, relies on U.S. suppliers for about 60% of parts for its C919 passenger aircraft.Read more: Trump Blacklisting Jolts China’s Ambitions to Take on BoeingThe Commerce Department also added Skyrizon to the military end-user list, saying it poses a threat to national security. Ross said the company’s push to acquire and “indigenize” foreign military technologies posed a significant threat to U.S. national security and foreign policy interests. Skyrizon was unable to be reached for comment.“This action serves to warn the export community of Skyrizon’s significant ties to the People’s Liberation Army,” Ross said.(Adds Chinese foreign ministry comments, closes share prices)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • Xiaomi Shares Plunge More Than 12% Over Inclusion on U.S. Blacklist

    By Gina Lee

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  • MSCI and index compilers to drop China Mobile, Chinese telecoms stocks from global benchmarks

    MSCI said it would drop three of China's biggest telecommunications companies from several of its global equity benchmark indices on Friday in response to a US executive order restricting ownership of companies with purported ties to the Chinese military.The index compiler said it would drop the Hong Kong-traded shares of China Mobile, China Telecom and China Unicom from its family of MSCI ACWI indices and MSCI China All Shares indices at the close of business on Friday, following further guidance from the Office of Foreign Assets Control (OFAC), an arm of the US Treasury Department.S&P; Dow Jones Indices said on January 6 it would remove the telecoms trio before the start of trading on Monday. FTSE Russell will also do the same to some of its stock, bond and other associated indexes on Monday.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.The announcement came after the New York Stock Exchange (NYSE) said it would delist the American depositary shares (ADS) of the three Chinese telecoms beginning Monday. The NYSE originally announced on January 1 it would delist their shares, but reversed course several times this week until it received updated guidance from OFAC.The US claims China Telecom, China Mobile and China Unicom are among companies controlled by the Chinese military. Photo: Bloomberg alt=The US claims China Telecom, China Mobile and China Unicom are among companies controlled by the Chinese military. Photo: BloombergLast November, President Donald Trump signed an executive order that barred American investors, including pension funds and university endowments, from owning or trading securities of 35 companies and dozens of subsidiaries that the Trump administration claims are controlled by Chinese military.The ban on US persons kicks in from Monday and they have until November 11 to divest their holdings of similarly designated companies but cannot buy new shares starting Monday.The order is one among a flurry of moves taken in the waning days of the Trump administration against Chinese companies, including moves to limit their access to US capital markets.On Wednesday, the administration added it would ban transactions with Ant Group's Alipay, Tencent Holdings' WeChat Pay and six other Chinese apps, citing national security concerns.The Chinese telecoms stocks represented 0.07 per cent of the MSCI ACWI indices, 0.50 per cent of the MSCI Emerging Markets indices and 0.81 per cent of the MSCI China All Shares indices as of January 6, MSCI said.MSCI previously said it would drop 10 Chinese companies from its indices after they were blacklisted by the US government, including surveillance camera maker Hangzhou Hikvision and Semiconductor Manufacturing International Corporation (SMIC) and supercomputer manufacturer Dawning Information, which is also known as Sugon.Other major stock and bond index providers, including FTSE Russell and S&P; Dow Jones Indices, have taken similar steps beginning in December to drop designated Chinese stocks from their global benchmarks.In this week's announcements, S&P; Dow Jones Indices said it would remove the telecoms trio from 113 headline equity indices, and five bonds from four indices, the start of trading on Monday. FTSE Russell will also do the same to some of its stock and other associated indexes."The companies facing immediate removal from the NYSE likely aren't a major part of most US-based investors' portfolios but may present issues on the margin," said Katie Rushkewicz Reichart, Morningstar's director of US equity strategies.Actively managed funds in the US with Morningstar ratings held about US$1.3 billion worth of securities facing blacklisting as of their most recently disclosed portfolios, Rushkewicz Reichart said in a research note on Friday.The biggest effect may be on 15 actively managed funds rated by Morningstar who held nearly US$700 million of China Mobile's H shares or ADSs per their most recent disclosures, she said.Shares of China Mobile fell as much as 9.9 per cent in intraday trading in Hong Kong on Friday, while shares of China Telecom dropped as much as 10.3 per cent and China Unicom (Hong Kong)'s shares were off as much as 11.2 per cent.The ADSs of the telecoms companies traded in New York are fungible with their H-shares in Hong Kong, which means they can be exchanged for their counterparts ahead of the NYSE delisting. Each China Telecom ADS is equal to 100 shares in Hong Kong, while Unicom's ratio is 1 for 10, and China Mobile's ratio is 1 for 5.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.

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  • Asian Stocks Up Over Hopes for More U.S. Stimulus, Peaceful Transfer of Power

    By Gina Lee

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  • Why China Unicom Stock Fell Today

    Shares of China Unicom (NYSE: CHU) plummeted after the New York Stock Exchange said in a statement late Wednesday that it would move forward with delisting the Chinese telecom company and some of its peers. For some tech investors, the latest decision by the NYSE is a frustrating one. The exchange initially planned to delist China Unicom in response to an executive order from President Trump.

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  • 4 Lessons From China Mobile's Delisting Debacle

    China Mobile (NYSE: CHL), the largest telecom company in China, and its two smaller peers, China Telecom (NYSE: CHA) and China Unicom (NYSE: CHU), were all recently targeted with a delisting order from the Trump administration. Last November, President Donald Trump issued an executive order that barred American citizens from purchasing shares of U.S.-listed Chinese companies with alleged ties to the Chinese military after Jan. 11. On New Year's Eve, the New York Stock Exchange announced it would suspend trading in all three companies from Jan. 7 to Jan. 11 and start the delisting process.

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  • NYSE Reverses Again With Plan to Delist China Telecom Firms

    (Bloomberg) -- The New York Stock Exchange is proceeding with a plan to delist three major Chinese telecommunications firms, its second about-face this week, after U.S. Treasury Secretary Steven Mnuchin disagreed with its shock decision to give the companies a reprieve.The pivot comes after the exchange’s earlier move caught U.S. officials off guard. The exasperation reached the highest levels of the administration of President Donald Trump, who signed an executive order in November requiring investors to pull out of Chinese businesses deemed a threat to U.S. national security. The NYSE’s back-and-forth moves have also sown deep confusion in global financial markets.The decision is based on “new specific guidance received on Jan. 5, 2021, that the Department of Treasury’s Office of Foreign Assets Control provided to the NYSE,” the exchange said in a statement Wednesday. “The issuers have a right to a review of this determination.” An NYSE representative declined to elaborate on the decision.In Hong Kong trading Thursday, China Telecom Corp. shares dropped 9.4%, the most since 2008, while China Mobile Ltd. had its worst day since 2015 in falling 7.2%. They respectively closed at their lowest since 2008 and 2006. China Unicom Hong Kong Ltd. declined 11%.The new guidance referenced by the NYSE was published on the Treasury Department’s website shortly after the delisting announcement. The agency’s Office of Foreign Assets Control, in a frequently asked questions posting, explicitly listed the three Chinese telecom firms as being on the list of prohibited companies. A spokesperson for the Treasury Department declined to comment.Investors, exchanges and indexes had been clamoring for more details on the executive order after the Treasury Department took six weeks to issue additional guidance.‘Market Clarity’“It’s clear OFAC is trying to provide market clarity around the delisting situation we’ve been witnessing, for the avoidance of all doubt on why certain decisions may be made,” said Daniel Tannebaum, head of sanctions at Oliver Wyman in New York. “You certainly have seen companies named in prior FAQs before, but without the type of kerfuffle we’ve witnessed this week.”This is “essentially OFAC putting out a FAQ to justify the actions taken,” he said.Mnuchin entered the fray Tuesday, calling NYSE Group Inc. President Stacey Cunningham to express his displeasure with the decision to let the three firms keep trading on the Big Board, according to people familiar with the matter.The NYSE first announced it would delist the companies on New Year’s Eve, before changing course four days later. The initial decision was meant to comply with Trump’s order, but the exchange reversed itself after questions emerged over whether the companies were actually banned, according to people familiar with the matter. The Treasury provided specific guidance directly to the NYSE on Tuesday night, paving the way for the latest delisting announcement, one of the people said.The trio of companies lost more than $30 billion in market value in the final weeks of 2020 as investors pulled back following Trump’s order, then shed as much as $12 billion more as their American depositary receipts tumbled Monday on the NYSE’s decision to delist them. Prices climbed Tuesday after the NYSE canceled the delisting, and then softened again after Bloomberg reported that the exchange may proceed after all.“It’s odd for the NYSE to get this so wrong,” said Bloomberg Intelligence analyst Larry Tabb. “Their marketing and public relations team has historically been one of the best. It’s bad enough to do a 180 on this within a week, but to go 360 degrees on such a major move so quickly means that they either got this terribly wrong, or there was significant outside pressure driving these decisions.”Trading BannedThe order bans trading in the affected securities starting Jan. 11. If President-elect Joe Biden leaves Trump’s executive order in place, U.S. investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by Nov. 11. And if the U.S. determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.Since the start of the coronavirus pandemic, Trump’s administration has ramped up its attacks on China, imposing sanctions over human-rights abuses and the nation’s crackdown on Hong Kong. The U.S. also has sought to sever economic links and deny Chinese firms access to American capital.Hard-liners in the administration have warned investors for months that Chinese companies could be delisted from U.S. exchanges. As far back as August, a senior State Department official, Keith Krach, wrote a letter warning universities to divest from Chinese firms ahead of possible delistings.(Updates stock performance in the fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • U.S.-traded Chinese stocks finish lower as ban momentum grows

    U.S.-traded shares of Chinese companies fell Wednesday as the New York Stock Exchange changed its mind once again on whether or not to delist a trio of China-based telecom stocks and on a report that Alibaba Group Holding Ltd. and Tencent Holdings Ltd. may be next.

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  • U.S. government considering banning investments in Alibaba, Tencent by Americans: report

    The U.S. government is contemplating a plan that would restrict Americans from buying shares of Alibaba Group Holding Ltd. and Tencent Holdings Ltd. , according to The Wall Street Journal. The government has been increasingly cracking down on investments in companies that it claims to have ties with the Chinese military. The WSJ report, which cites multiple anonymous sources, said that the U.S. government has been debating whether restrictions on investments in Alibaba and Tencent would have a far-ranging impact on the markets, and it remains uncertain whether the government will go through with such prohibitions. Late Tuesday, the New York Stock Exchange again flipped its stance on whether it will delist three Chinese telecommunications companies-China Telecom Corp. Ltd. , China Mobile Ltd. , and China Unicom - from its exchanges as it seeks to comply with an executive order from President Trump that aims to bar U.S. investors from buying shares of companies with alleged ties to China's military. The New York Stock Exchange said last week that it would delist the names, before reversing course earlier this week and then later saying it would revert to its original plans to delist the stocks. Alibaba's U.S.-listed shares are off about 5% in Wednesday afternoon trading, while Tencent's are off more than 3%.

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  • NYSE’s Second-Guessing on China Delistings Sows Confusion

    (Bloomberg) -- Almost two months after President Donald Trump said he’s cutting off U.S. investment in companies tied to China’s military, confusion reigns on Wall Street over how to interpret his order. One certainty: Savers are losing billions.The New York Stock Exchange is considering reversing course a second time to delist three major Chinese telecommunications firms after conferring further with senior authorities on how to interpret an executive order Trump issued Nov. 12, according to people familiar with the matter. Lawyers said the drama, whipsawing markets in recent days, is exposing the ambiguities of the government’s instructions.The trio of companies -- China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. -- lost more than $30 billion in market value in the final weeks of 2020 as investors pulled back following Trump’s order. They shed as much as $12 billion more as their American depositary receipts tumbled Monday on the NYSE’s decision to delist them. Prices climbed Tuesday after the NYSE canceled the delisting, and then they softened anew after Bloomberg broke the news that the exchange may proceed after all.“It’s a mismanaged process,” said Shang-Jin Wei, a professor of Chinese business and finance at Columbia Business School. “The intent was to penalize these companies and penalize the Chinese government,” he said. “The problem is it ends up penalizing U.S.-based investors.”Asset and wealth managers catering to U.S. savers are among the top holders of the three companies’ ADRs, according to data compiled by Bloomberg, and sudden price swings can give an advantage to high-speed traders and hedge funds able to react quickly. China Mobile, once part of a “red chip” boom in the late 1990s, was among the Asian nation’s first giants to sell shares in the U.S.The NYSE’s latest potential pivot follows a whirlwind 18 hours. The decision to keep the listings came as a surprise and sparked confusion among officials at the U.S. Treasury and State departments, and the National Security Council, and triggered exasperation that reached the highest levels of the Trump administration, according to people familiar with the matter, who asked not to be identified because the conversations were confidential.Expressing DispleasureTreasury Secretary Steven Mnuchin entered the fray Tuesday, calling NYSE Group Inc. President Stacey Cunningham to express his displeasure with the exchange’s decision to let the three companies keep trading on the Big Board, said the people. Also involved in the administration’s response were Chief of Staff Mark Meadows, National Security Adviser Robert O’Brien and National Economic Council Director Larry Kudlow.NYSE and Treasury spokespeople declined to comment. China’s Foreign Ministry said Wednesday the U.S. flip-flops “all the time,” and by targeting foreign companies listed in the U.S., it has revealed the “arbitrary, capricious and uncertain nature” of its rules and regulations.“The U.S.’s behavior will determine its global image, whether it is trustworthy and reliable,” the ministry’s spokeswoman Hua Chunying said in Beijing.Read more: China Says U.S. Flip Flops ‘All the Time’ Amid Listing ReversalsShares of the three telcos rallied for a second day in Hong Kong after NYSE’s reversal of its delisting decision. China Mobile, the largest of the three, rose 1.2% on Wednesday, and the other two jumped more than 3.5%.Changing CourseSix weeks elapsed after Trump’s executive order before key offices began providing public guidance for exchanges to follow. The NYSE soon announced on New Year’s Eve that it would delist the companies, before changing course four days later. The NYSE’s initial decision was meant to comply with the order but the exchange reversed itself after questions arose behind the scenes, according to people familiar with the matter.Some of those doubts were sown by law firms and Wall Street trade associations that argued there were legal questions about whether all the companies on the government’s list should be thrown off the exchange. Because shares of the companies are widely held in emerging markets mutual funds and make up parts of stock indexes, investment firms argued that more guidance was needed from the Treasury. The department offered some on Monday, just hours before the exchange announced its decision to allow the companies to keep trading.A number of people involved in the process said such confusion was inevitable in such a hasty attempt to punish China as the Trump administration makes its way out the door.Read More: NYSE Abruptly Reverses Plan to Delist Three Chinese TelecomsIf and when the exchange receives confirmation from the government about what’s prohibited, it would move forward with delisting, the people said. The Treasury may also provide further clarification through its Office of Foreign Assets Control, one person said.On a conference call Tuesday with more than 500 market participants, the NYSE’s head of equities, Hope Jarkowski, said the situation remained fluid and that the exchange would provide additional updates when it’s able.The Securities Industry and Financial Markets Association also hosted a call with more than 100 people, many from asset management firms and brokers, but it offered little clarity, another person said. The general consensus, that person noted, was that it was going to be a very challenging situation for investment companies.S&P Dow Jones Indices said it will no longer delete the U.S.-listed shares of China Mobile, China Telecom and Unicom from its benchmarks, but declined to comment on the possibility that NYSE will reverse course yet again.GLOBAL INSIGHT: 92 Trillion Reasons Not to Delist China TelcosAnd for financial markets, the continued uncertainty leaves them more vulnerable to further disruptions as Trump proceeds with his crackdown on Chinese companies at the tail end of his presidency. His order is still scheduled to take effect on Jan. 11 -- nine days before he leaves office. An official working on Joe Biden’s transition declined to comment on whether the president-elect would reverse it.If Biden leaves the order in place, U.S. investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by Nov. 11. And if the U.S. determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.Since the start of the coronavirus pandemic, the Trump administration has ramped up its attacks on China, imposing sanctions over human-rights abuses and the nation’s crackdown on Hong Kong. The U.S. has also sought to sever economic links and deny Chinese firms access to American capital.Hard-liners in the administration -- among them Secretary of State Michael Pompeo and White House trade adviser Peter Navarro -- have warned investors for months that Chinese companies could be delisted from U.S. exchanges. As far back as August, a senior State Department official, Keith Krach, wrote a letter warning universities to divest from Chinese firms ahead of possible delistings.One of their arguments was that the Chinese companies don’t adhere to internationally accepted accounting practices. The other argument, laid out in Trump’s November executive order, is that many Chinese companies have links to China’s military and pose a threat to American national security.(Updates with comments from China’s foreign ministry in eighth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • NYSE Mulls Reverting to Original Plan to Delist China Shares

    (Bloomberg) -- The New York Stock Exchange is considering proceeding in delisting three major Chinese telecommunications firms after Treasury Secretary Steven Mnuchin criticized its shock decision to grant the companies a reprieve, said three people familiar with the matter.The NYSE’s potential pivot follows a whirlwind 18 hours in which the exchange caught U.S. officials off guard, with the exasperation reaching the highest levels of the Trump administration. The back-and-forth also sowed deep confusion within global financial markets about the policy that set off the remarkable chain of events: an order signed by President Donald Trump in November that requires investors to unload Chinese businesses deemed a threat to U.S. national security.Mnuchin entered the fray Tuesday, calling NYSE Group Inc. President Stacey Cunningham to express his displeasure with the exchange’s decision to let China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. keep trading on the Big Board, said the people who asked not to be named in discussing a private conversation. Also involved in the administration’s response were Chief of Staff Mark Meadows, National Security Adviser Robert O’Brien and National Economic Council Director Larry Kudlow.China Mobile paced declines in late trading for the American depositary receipts of the three companies, falling 2.5% to $28.61 at 6 p.m. in New York. The final gyrations of the day shaved about $3.5 billion in collective market value from the trio after each had rallied on the expectation of at least a temporary respite from Trump’s order.Changing CourseNYSE first announced it would delist the companies on New Year’s Eve, before changing course four days later. The NYSE’s initial decision was meant to comply with the order but the exchange reversed itself after questions emerged over whether the companies were actually banned, according to people familiar with the matter.If and when the exchange receives confirmation from the government about what’s prohibited, it will move forward with delisting, the people said. Treasury may also provide further clarification through its Office of Foreign Assets Control, one person said.NYSE and Treasury spokespeople declined to comment. Treasury released a document Monday that offered further information on the order hours before the exchange announced its decision to allow the companies to keep trading.The possibility that the firms will still be delisted means financial markets are likely to face further disruptions from Trump’s crackdown on Chinese companies. China Mobile, China Telecom and China Unicom all rallied earlier Tuesday, with investors concluding that the NYSE’s reprieve indicated tensions might be easing between Washington and Beijing.Read More: NYSE Abruptly Reverses Plan to Delist Three Chinese TelecomsThe order signed by Trump is still scheduled to take effect on Jan. 11 -- nine days before he leaves office. An official working on Joe Biden’s transition declined to comment on whether the president-elect would reverse it.If Biden leaves the order in place, U.S. investment firms and pension funds would be required to sell their holdings in companies linked to the Chinese military by Nov. 11. And if the U.S. determines additional companies have military ties in the future, American investors will be given 60 days from that determination to divest.Trump’s AttacksSince the start of the coronavirus pandemic, the Trump administration has ramped up its attacks on China, imposing sanctions over human-rights abuses and the nation’s crackdown on Hong Kong. The U.S. has also sought to sever economic links and deny Chinese firms access to American capital.Hard-liners in the administration -- among them Secretary of State Michael Pompeo and White House trade adviser Peter Navarro -- have warned investors for months that Chinese companies could be delisted from U.S. exchanges. As far back as August, a senior State Department official, Keith Krach, wrote a letter warning universities to divest from Chinese firms ahead of possible delistings.One of their arguments was that the Chinese companies don’t adhere to internationally accepted accounting practices. The other argument, laid out in Trump’s November executive order, is that many Chinese companies have links to China’s military and pose a threat to American national security.(Updates with shares in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • Asian Stocks Down as Vote Counting Starts for Georgia Election

    By Gina Lee

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  • Boston Private, BP, China Unicom: 5 Top Stock Gainers for Tuesday

    Stocks finished higher Tuesday as oil prices rose and Wall Street kept an eye on the two key Senate runoff elections in Georgia. Here are some of the market's biggest gainers for Tuesday: 1. Boston Private | Percentage Increase 36% Boston Private Financial Holdings surged after SVB Financial Group agreed to acquire the banking and wealth-management company for $900 million.

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  • Why Shares of China Mobile, China Telecom, and China Unicom Are Rising Today

    Shares of China Mobile (NYSE: CHL), China Telecom (NYSE: CHA), and China Unicom (NYSE: CHU), the top telecommunications companies in China, were all rising today after the New York Stock Exchange reversed an earlier decision to have the tech stocks delisted from the exchange. China Mobile's shares were up 9.1%, while China Telecom had gained 8.7% and China Unicom had popped 13.6% as of 10:56 a.m. EST.

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  • NYSE Abruptly Reverses Plan to Delist Three Chinese Telecoms

    (Bloomberg) -- The New York Stock Exchange has abruptly reversed plans to delist three major Chinese telecommunications companies after consulting regulators about an investment ban ordered by President Donald Trump.Coming days before the companies were to be delisted -- and just over two weeks before Trump is to leave the White House -- the U-turn avoids a step that threatened to heighten U.S.-China tensions further.The Big Board gave no reason for its decision in a statement released during Asian hours, saying only that it had consulted “relevant regulatory authorities” about Trump’s executive order, signed in November as part of his administration’s push to check China’s growing economic power.The move came as a surprise and sparked confusion among officials at the U.S. Treasury and State departments, and National Security Council, according to people familiar with the matter, who asked not to be identified because the conversations were confidential.The about-face, described as “bizarre” by a Jefferies Financial Group Inc. analyst, also whipsawed investors who on Monday had sold shares of the Chinese telecom companies and raced to bet on which stocks might be delisted next. China Mobile Ltd., China Telecom Corp. and China Unicom Hong Kong Ltd. all rallied on Tuesday.A lack of clarity on why NYSE changed course left investors to speculate over whether it was simply a result of the exchange initially misinterpreting the November executive order, or something with broader geopolitical implications.The episode has added to a sense of confusion surrounding implementation of Trump’s order in the waning days of his administration. Index providers FTSE Russell, MSCI Inc. and S&P Dow Jones Indices have all said in the past month they would remove some Chinese companies from equity gauges to comply with the order, but their lists of affected stocks have sometimes differed markedly.Read more: China Mobile May Dodge Index Exclusion After NYSE U-TurnThe stakes are high for both Chinese and U.S. companies. The former have long turned to America’s stock market for capital and international prestige, raising at least $144 billion over more than two decades. Their U.S. counterparts, meanwhile, are keen to avoid any ratcheting up of tensions that might curb their access to China’s vast economy. Wall Street banks, in particular, have been pouring resources into the country after gaining unprecedented scope to operate there last year.The NYSE’s reversal was “quite unexpected,” said Jackson Wong, director of asset management at Amber Hill Capital Ltd. in Hong Kong. “Some funds that had an obligation to unload these shares will now need to buy them back. Some investors are also starting to price in a scenario that the decision to halt delistings could be the start of a de-escalation in tensions between China and the U.S.”Calls and emails to the media department of the China Securities Regulatory Commission weren’t immediately returned Tuesday. The CSRC had responded to NYSE’s initial plan by calling it groundless and “not a wise move.” Spokespeople for the U.S. Treasury Department and the Financial Industry Regulatory Authority declined to comment. Spokespeople for the White House and the U.S. Securities and Exchange Commission didn’t immediately reply to requests for comment.It’s unclear whether NYSE’s reversal will have any impact on index providers, which help guide investments worth trillions of dollars. FTSE Russell declined to comment on Tuesday, while MSCI and S&P Dow Jones couldn’t immediately be reached. Bloomberg LP, the parent of Bloomberg News, also compiles stock and bond indexes.In separate statements, China Mobile, China Telecom and Unicom said they will continue to monitor developments. China Mobile, the largest of the three, jumped 5.1% in Hong Kong on Tuesday. The company’s NYSE-listed shares were up 9% at 11.17 a:m. in New York, while China Unicom’s U.S. shares surged 14%.China’s Foreign Ministry spokeswoman Hua Chunying said Tuesday that Beijing hopes the U.S. will respect the market and rule of law, and do things conducive to upholding order in the global financial markets.The NYSE’s initial delisting proposal, announced on New Year’s Eve, marked the first time an American exchange had unveiled plans to remove Chinese companies as a direct result of rising geopolitical tensions between the two superpowers. In his executive order, Trump said the three telcos were among those directly supporting the Chinese military, intelligence and security apparatuses and aiding in their development and modernization.The developments have unfolded in the last few weeks of the Trump administration, which for years has railed against China for what the U.S. president calls unfair trading practices. Trump has imposed tariffs on imports from China and carried out an aggressive campaign against Chinese technology firms such as Huawei Technologies Co., measures that have often elicited retaliation from Beijing. In a December article, Secretary of State Michael Pompeo discussed how U.S. investors are funding “malign PRC companies” whose shares are included in major indexes.The NYSE has faced criticism from some market watchers over the way it handled the situation. Travis Lundy, an Asia markets veteran and independent analyst who publishes on the Smartkarma platform, said in a tweet that the U-turn reflected “rank ineptitude” by the exchange and “weak leadership” by the Treasury Department.“They’ve had seven weeks to talk to Treasury about this,” Lundy said, adding that the department had published lengthy supplemental FAQs as well. “To implement the decision, and then four days later to backtrack -- that’s just odd.”While the impact on China Mobile and its two peers was always likely to be minimal given the bulk of their shares trade in Hong Kong, the delisting plan had heightened concerns about tit-for-tat sanctions between China and the U.S. as tensions between the superpowers simmer.Read more: TikTok, Hong Kong and More U.S.-China FlashpointsChinese businesses without military links are also potentially vulnerable to delisting after Trump signed legislation with bipartisan support last month that could kick firms off U.S. exchanges unless American regulators can review their financial audits.The outlook may depend in large part on how U.S.-China relations evolve after president-elect Joe Biden enters the White House later this month. While China’s President Xi Jinping said in a congratulatory message to Biden in November that he hopes to “manage differences” and focus on cooperation, few expect tensions to ease anytime soon.“We don’t know as to how the Biden administration will pick up the baton that’s been left by the Trump administration,” said George Magnus, a research associate at Oxford University’s China Centre and author of “Red Flags: Why Xi’s China is in Jeopardy,” speaking on Monday before the NYSE’s reversal. “There will certainly be a transition cost to China if the mood in the U.S. remains sour.”(Updates with reaction among officials in 4th paragraph, Finra official declining to comment in 10th, shares in 12th.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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  • Lessons From the China Mobile - NYSE Flip-Flop

    The delisting flip-flop by NYSE reinforces the lesson to ignore politics and focus on the fundamentals

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  • A Look Into China Unicom's Debt

    Shares of China Unicom (NYSE:CHU) decreased by 1.83% in the past three months. Before we understand the importance of debt, let us look at how much debt China Unicom has.China Unicom's Debt Based on China Unicom's balance sheet as of April 21, 2017, long-term debt is at $5.81 billion and current debt is at $19.76 billion, amounting to $25.58 billion in total debt. Adjusted for $3.40 billion in cash-equivalents, the company's net debt is at $22.17 billion.Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.Investors look at the debt-ratio to understand how much financial leverage a company has. China Unicom has $88.46 billion in total assets, therefore making the debt-ratio 0.29. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 35% might be higher for one industry and normal for another.Why Debt Is Important Besides equity, debt is an important factor in the capital structure of a company, and contributes to its growth. Due to its lower financing cost compared to equity, it becomes an attractive option for executives trying to raise capital.However, due to interest-payment obligations, cash-flow of a company can be impacted. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.Looking for stocks with low debt-to-equity ratios? Check out Benzinga Pro, a market research platform which provides investors with near-instantaneous access to dozens of stock metrics - including debt-to-equity ratio. Click here to learn more. See more from Benzinga * Click here for options trades from Benzinga * 12 Communication Services Stocks Moving In Tuesday's Pre-Market Session(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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