News
Current location: Home - News
NYSE Presses On With Delisting of Chinese Telecoms
2021-5-10
The move, first announced on Dec. 31 last year, follows an executive order by the Trump administration last November banning US investors from investing in Chinese firms deemed to have links with the Chinese military. Once the Biden administration came in in January, China Unicom, China Mobile and China Telecom pressed the New York board to reconsider, but to no avail.
The amount of American Depository Receipts held by the three carriers has dropped sharply since the end of last year. China Unicom had issued five million ADRs as of the end of April, down from 33 million at the end of 2020, making up 0.2 percent of the company's total shares, it said.
China Telcom had 1.14 million ADRs as of May 6, accounting for 0.14 percent of the company's total shares and down from 0.57 percent at the end of last year. China Mobile has yet to give updated information on its US stock.
Capital support for the three major telecom operators through the New York stock exchange is minimal, said Fu Liang, an independent telecom analyst. Their listings on the mainland and Hong Kong bourses can already meet their financing needs, he added.
China Telecom’s Hong Kong shares [HKG:0728] were trading down 2.45 percent at HKD2.79 (USD0.36) at 2:25 p.m. China time today. It is planning on issuing an additional 12.09 billion shares at a value of CNY1 (USD0.15) each, the firm said in March. The funds raised will be used to finance fifth-generation network projects, cloud network infrastructure as well as further research and development.
China Mobile’s Hong Kong stock [HKG:0941] had lost 0.5 percent as of this afternoon to HKD49.75 (USD6.41). It is also considering an additional listing on the mainland, the company’s chairman said in March.
China Unicom’s Hong Kong shares [HKG:0762] were trading down 0.66 percent at HKD4.50 (USD0.58). Its Shanghai stock [SHA:600050] was trading up 0.70 percent at CNY4.34 (USD0.68).
WWW.LINGTONG.INFO is China's most authoritative information provider on non-ferrous scrap metals. Once registered, your account will be available on both Chinese and English websites. More information is waiting for you on www.lingtong.info . Register now for free!
