0/ "Lame Duck Delisting"
If nothing else changes, 3 Chinese telcos will delist from NYSE by 4am ET next Monday, Jan 11.
Let's dive into why this is happening and what it could all mean. (thread)
interconnected.blog/lame-duck-deli…
If nothing else changes, 3 Chinese telcos will delist from NYSE by 4am ET next Monday, Jan 11.
Let's dive into why this is happening and what it could all mean. (thread)
interconnected.blog/lame-duck-deli…
1/ China Unicom/Mobile/Unicom HK are the only 3 co's on DoD's “Communist Chinese military companies” list trading on Wall Street, so using delisting to comply w/ Trump's EO is a one-time thing.
defense.gov/Newsroom/Relea…
defense.gov/Newsroom/Relea…
2/ Damage to the telcos minimal: only ~2% of combined float traded on NYSE & almost all biz activities are inside China.
They've been trading in NYSE for many years, so used to need access to US capital to grow as companies, not any more, esp given growth of HK/SH/SZ exchanges.
They've been trading in NYSE for many years, so used to need access to US capital to grow as companies, not any more, esp given growth of HK/SH/SZ exchanges.
3/ Why did Trump issue EO to accelerate delisting, when Holding Foreign Companies Accountable Act (HFCAA) was poised to pass & force delisting anyway?
It's a great way to rack up more “Fuck China” points, burnish image as toughest US politician on China.
It's a great way to rack up more “Fuck China” points, burnish image as toughest US politician on China.
https://twitter.com/jordanschnyc/status/1283827359385292801?lang=en
4/ Image helps w/ either a 2024 run or "kingmaker" role to GOP's new generation of ambitious, opportunistic China hawks, like Senators Hawley, Rubio, Cruz, Cotton.
Lame duck delisting also limits Biden adm's policy options, must look for new "surface area" to be tougher.
Lame duck delisting also limits Biden adm's policy options, must look for new "surface area" to be tougher.
5/ One possible direction is EU, as signaled in this tweet on China-EU investment agreement by incoming NSA Jake Sullivan.
At least 2 co's on "Communist Chinese military companies” list are trading in Frankfurt. Will they be pressured to delist too?
At least 2 co's on "Communist Chinese military companies” list are trading in Frankfurt. Will they be pressured to delist too?
https://twitter.com/jakejsullivan/status/1341180109118726144
6/ Lastly, we may finally see use of “Unreliable Entity List” from Ministry of Commerce to reciprocate/retaliate. Which US co will be added? My current bet: Cisco.
Pls read post for more context & analysis 👇
interconnected.blog/lame-duck-deli…
Pls read post for more context & analysis 👇
interconnected.blog/lame-duck-deli…
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