New York Stock Exchange to Delist Three Chinese Telecom Companies

The New York Stock Exchange (NYSE) will delist the below three Chinese Telecom Companies according a Bloomberg news report:

  1. China Mobile (CHL)
  2. China Telecom (CHA)
  3. China Unicom (Hong Kong) Limited (CHU)

The stocks will be delisted between January 7 and 11. Once delisted these stocks may move to the OTC markets. However it remains to be seen if that they trade on the OTC. If you own any of these stocks you have have to consider your next options. Usually when ADRs get delisted from an exchange they may trade on the OTC markets. In this case, that may or may not happen. You can refer to the below post for more details:

Below is a brief excerpt from the report:

The New York Stock Exchange said it will delist three Chinese companies to comply with a US executive order that imposed restrictions on companies that were identified as affiliated with the Chinese military.

China Mobile, China Telecom and China Unicom Hong Kong will be delisted between January 7 and January 11, and proceedings to delist them have started, according to a statement by the exchange.

SourceNew York Stock Exchange to delist Chinese telco giants on US executive order, SCMP

From an article at the WSJ:

The New York Stock Exchange will delist China’s three large telecommunication carriers, following a U.S. government order barring Americans from investing in firms it says help the Chinese military.

This will result in China Mobile Ltd. —which is among the most valuable of China’s listed state-owned enterprises—being kicked off the Big Board after more than two decades, following the privatization of its predecessor in 1997.

NYSE said, at the latest, that it would suspend trading in securities issued by China Mobile, China Telecom Corp.  and China Unicom Hong Kong Ltd. at 4 a.m. on Jan. 11. It will act four days sooner if it doesn’t get confirmation from the Depository Trust & Clearing Corp. that the clearinghouse will settle trades made on Jan. 7 and Jan. 8.

NYSE said it would also halt trading in closed-end funds and in exchange-traded products listed on its NYSE Arca exchange if they hold banned stocks.

On Friday, China Unicom said it will release a statement in due course. China Mobile and China Telecom didn’t immediately respond to requests for comment.

An executive order signed by President Trump in November will block Americans from investing in a list of companies the U.S. government says supply and support China’s military, intelligence and security services. The ban starts on Jan. 11 and investors have until November to divest their holdings.

SourceNYSE to Delist China’s Major Telecommunications Operators, WSJ

Disclosure: No Positions

Update #1 (Jan 5, 2021):

NYSE scrapped its plan to delist the above three telecom firms according to a report in the WSJ. So investors need not  have to worry about delisting.

Update #2 (Jan 5, 2021):

Related article: What the Delisting of Chinese ADRs Means for Investors, WSJ:

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