Posted in Finance

China’s top three carriers de-listed by U.S. Stocks plunge at start of new year

 2021年1月4日

On January 4, the first day of stock market trading in Hong Kong and the mainland in 2021, the stocks of China Mobile and other three major operators plunged due to the impact of the delisting of the New York Stock Exchange in the United States.

On December 31, 2020, the New York Stock Exchange (NYSE) said it would initiate delisting procedures for three telecom operators, China Mobile, China Telecom and China Unicom. As a result, the stocks of the three companies listed in Hong Kong and the mainland fell on Jan. 4.

According to Oriental Fortune Securities news, at 10:30 a.m. Beijing time on Jan. 4, Hong Kong shares of China Mobile (HK0941) fell 3.96 percent to HK$42.45, China Telecom (HK0728) fell 3.72 percent to HK$2.07 and China Unicom (HK0762) fell 2.7 percent to HK$4.33. A shares of China Unicom (600050) fell 3.36 percent to 4.31 yuan.

A statement from the New York Stock Exchange on Dec. 31 last year said trading in China Mobile Ltd, China Telecom Corp and China Unicom Hong Kong Ltd will be suspended from Jan. 7 to Jan. 11 and delisting procedures have been initiated. to comply with a U.S. executive order imposing restrictions on companies found to have ties to the Chinese (Communist Party of China) military.

President Donald Trump signed an order last November prohibiting U.S. investments in companies owned or controlled by the Chinese Communist Party’s military. The order prohibits U.S. investors from trading stocks on a list of Chinese companies designated by the Pentagon as having military ties.

Some analysts say the U.S. expulsion of the three major Chinese telecom operators blocks one avenue for Chinese telecom operators to finance the construction of 5G. The move represents a further escalation of U.S. economic sanctions against China, and more related companies are expected to be mandatorily delisted subsequently.

As of 2:10 p.m. GMT on the 4th, China Mobile shares were down 1.81% at HK$43.50, China Telecom shares were down 3.26% at HK$2.08, and China Unicom shares were down 2.70% at HK$4.33.