Chinese Firms Shares Fall Due to U.S Executive Order

The shares of 3 Chinese telecommunications companies fell by 5% on their first trading after canceling their listing on the New York Stock Exchange to comply with a U.S. executive order that sanctioned companies identified as affiliated with the Chinese military.

Meanwhile, NYSE reported that the American depository receipts of the three firms will be suspended from trading between Jan. 7 and Jan. 11. Also, the nation’s oil majors including CNOOC Ltd. also fell on concerns they will be targeted next for delisting in the U.S, according to Bloomberg report.

On other hand, in a bid to pressure Beijing over what it views as abusive business practices. China’s securities regulator explained that given the small amount of U.S.-traded shares at each of the three companies, the impact on them would be limited and they are well positioned to handle any fallout.

Earlier, the U.S. has stepped up economic sanctions and travel bans against Chinese companies, government officials and Communist Party members, especially recently Under Trump.

In December, the U.S. announced plans to limit visas for members of the Chinese Communist Party and their family members to one month, instead of 10 years,according to AP.

Moreover, Chinese tech giant Huawei has been shut out of the U.S. market and the U.S. has lobbied other countries to follow suit. In contrast, the Chinese Commerce Ministry spokesperson explained in a statement that the NYSE delisting will greatly weaken all parties’ confidence in the US capital market.