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NYSE won't delist Chinese firms despite executive order

Yahoo Finance's Jared Blikre joined Yahoo Finance Live to discuss why the NYSE won't delist Chinese firms despite an executive order.

Video Transcript

SEANA SMITH: I want to bring in Jared Blikre for a closer look at some of the movers here into the clothes. Jared.

JARED BLIKRE: Well, that's right. The Dow, S&P, and NASDAQ up about 8/10 to 9/10 of a percent each, but the Russell 2000 really outperforming today. Let's take a look at that. That's up 2%. And kind of faltered a little bit recently but really had a nice month-- actually, two months, and let's just check out what it's been able to do over that time period. Up nearly 20%, really outpacing the other markets. So leads me to believe there might be some more in store for that value and cyclical play into the new year.

Let's take a look at the NASDAQ 100 heat map, and we can see-- well, there we go. There's the NASDAQ. All the mega caps which had started the day mixed are in the green now. Apple's up about 1.4%. Alphabet, Facebook, Amazon, each up just under 1% here, Seana.

ADAM SHAPIRO: Jared, can you update us on what's going on with the delisting of the Chinese telecom companies over at NYSE? Because apparently that's not going to happen now.

JARED BLIKRE: Apparently not. This was a really abrupt face, and it's leaving people scratching their heads. As a result, China stocks are surging today. Pinduoduo and JD.com up 11% and 9% respectively, and they are leading the NASDAQ higher. But you can see in our China heat map, lots and lots of green, and it wasn't that case a couple months ago. It looked like China was really cracking down on big tech.

And back to the original point of the story. President Trump had signed an order that made it illegal for companies who did business with the Chinese government in certain defense matters to be listed on US exchanges. The NYSE-- it looks to me like maybe somebody who wasn't in the upper, upper management, but had just enough authority to do this pulled the switch and said, OK, we're going to delist these guys. And somebody in the C-suite who knew better, maybe about something coming in the Biden administration, they said, no, we're not going to actually do this.

And it really is important for the NYSE itself to have good relations with the Chinese given all the listings that funnel into the US especially as they compete with the NASDAQ. It was a real black eye for them when they lost that Airbnb listing.

So we'll have to see if this is once again reversed in a few weeks, but my guess is that the Biden administration isn't going to pursue the matter, just based on the optics here.

SEANA SMITH: Seeing those stocks get a big boost today with just around 45 minutes to go-- 50 minutes to go in the trading day.

Jared Blikre, we'll see you later on in the show.