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Shares in China’s state-owned telecommunications companies declined in Hong Kong trading after the New York Stock Exchange (NYSE) said it was delisting them, to comply with a U.S. executive order that sanctioned firms identified as affiliated with the Chinese military.

The American depositary receipts (ADRs) of the three firms will be suspended from trading between Jan. 7 and Jan. 11, and the process of delisting them has started, NYSE said.

Shares of China Mobile Ltd., the largest of the three, fell as much as 4.5% on Monday to their lowest level since 2006, while China Telecom Corp. dropped 5.6%. The two posted their biggest intraday losses since mid-November. China Unicom Hong Kong Ltd. slipped 3.6%.

The nation’s oil majors including CNOOC Ltd., China’s largest offshore oil producer, also fell on concerns they would be targeted next for delisting in the U.S.

“It’s largely a blow to sentiment” that could be temporary, said Mark Huang, an analyst at Bright Smart Securities in Hong Kong. “Though the ADRs are not exceptionally large, there’s some impact on fundraising. Some passive index tracking funds may be selling to avert risk. More importantly, this is another reason to dump telecoms and pursue outperforming sectors.”

NYSE’s move followed an order by U.S. President Donald Trump 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.

China’s securities regulator said given the small amount of U.S.-traded shares at each of the three phone companies, the impact on them would be limited and that they are well positioned to handle any fallout.

The delisting is more of a symbolic blow amid heightened geopolitical friction between the world’s two largest economies, as they are thinly traded on the NYSE. The companies also get almost all of their revenue from China.

The decision “may impose short term selling pressure on the stocks,” Citigroup Inc. said in a research report. “However, Chinese telcos’ operations are mainly domestic focused and their sound fundamentals along with recovery trends and positive cash flows will not be affected by the delisting, in our view.”

The ADRs total less than 20 billion yuan ($3.1 billion) and account for at most 2.2% of the total shares of each, the China Securities Regulatory Commission (CSRC) said in a statement Sunday. China Telecom has 800 million yuan of ADRs and China Unicom has about 1.2 billion yuan.

“The recent move by some political forces in the U.S. to continuously and groundlessly suppress foreign companies listed on the U.S. markets, even at the cost of undermining its own position in the global capital markets, has demonstrated that U.S. rules and institutions can become arbitrary, reckless and unpredictable,” the CSRC said. “It is certainly not a wise move.”

Index provider FTSE Russell will say Monday whether it plans to remove more Chinese stocks from its benchmarks, after the U.S. added to its list of sanctioned securities in recent weeks. FTSE Russell had already listed eight company deletions in early December, a decision that was later followed by peers MSCI Inc. and S&P Dow Jones. The changes from FTSE Russell will be effective from the start of trading Thursday.

In separate statements Monday, each telecommunications operator said it “regrets” the NYSE’s actions, and that the decision might affect the prices and trading volume of the companies’ shares. All three companies said they hadn’t received any notification from the NYSE about the delisting.

China Unicom and China Mobile said they were reviewing ways to protect the companies’ “lawful rights.” China Telecom said it was considering “corresponding options” to “safeguard the legitimate interests of the company.”

China’s Ministry of Commerce said on Jan. 2 that the country would adopt necessary actions to protect the rights of Chinese companies and hopes the two countries can work together to create a fair, predicable environment for businesses and investors.

China has been seeking to avoid escalating the dispute with Washington before U.S. President-elect Joe Biden takes office in a few weeks. China’s Ministry of Foreign Affairs didn’t immediately respond Monday to a request for comment.

CNOOC fell as much as 5.7% in Hong Kong on Monday, its biggest intraday loss since Dec. 1. PetroChina Co. dropped 2.9% and China Petroleum and Chemical Corp., also known as Sinopec, slipped 1.4%.

CNOOC could be most at risk as it’s on the Pentagon’s list of companies it says are owned or controlled by the Chinese military, according to Bloomberg Intelligence analyst Henik Fung. PetroChina and Sinopec may also be under threat as the energy sector is crucial to China’s military, he said.

A Sinopec spokesperson declined to comment. CNOOC and PetroChina didn’t immediately respond to emailed requests for comment.

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