The New York Stock Exchange is reportedly prepared to do another U-turn after it was approached by U.S. Treasury Secretary Steven Mnuchin. The exchange previously canceled plans to delist three state-owned China telecommunications companies.
According to sources familiar with the matter, Mnuchin reached out to exchange president Stacey Cunningham on Tuesday. Mnuchin reportedly told Cunningham he disagreed with the exchange's reconsideration and asked that it reverse its course.
The exchange initially announced in a statement Monday that it wouldn't delist China Telecom, China Mobile and China Unicom - China's three largest telecommunications companies.
The exchange planned to delist the companies to comply with an executive order that effectively bans Americans from investing in companies and securities alleged to have ties with China's military.
The executive order took effect this week. The exchange planned to suspend trading of the three companies' stock Jan. 7.
The initial decision to ban the companies sparked a negative reaction from China. The country's Securities Regulatory Commission said last week the decision was politically motivated and was detrimental to international investors. It said banning the companies would damage the "market rule and order."
China's Commerce Ministry criticized the exchange's decision. The ministry said that it was prepared to take all necessary countermeasures to "safeguard the legitimate rights and interests of the Chinese companies." The ministry didn't elaborate.
Mnuchin's office has yet to comment on the reports and has declined to confirm whether he had called the exchange.
