SMIC Stock to be Removed from U.S. Over-the-Counter Market

On Wednesday (January 6), SMIC was notified by the U.S. Over-the-Counter (OTCQX) Markets that SMIC’s shares will be removed from the OTCQX Market from the close of trading on January 6, 2021.

In the evening of January 6, Beijing time, SMIC announced that it has been notified by OTC Markets Group, the operator of the OTCQX market (a financial market for over-the-counter securities in the United States), that SMIC will be delisted from the OTCQX market from the close of trading on Wednesday, January 6, 2021, and that SMIC’s securities (SIUIF, SMICY) will no longer be eligible to be quoted or traded on the OTC Link ATS in accordance with an executive order and related regulatory guidance.

The announcement mentions that SMIC’s American Depositary Shares (“ADR Shares”) are traded on the OTCQX Market (a financial market for over-the-counter securities in the United States) after delisting from the New York Stock Exchange in May 2019.

On December 3, 2020, the U.S. Department of Defense added SMIC to its list of “Chinese military companies,” meaning that U.S. investors are prohibited from holding or trading SMIC shares.

(OTC Markets Group, Inc., OTCBB: OTCM, informally known as the U.S. Pink Sheets Market or Pink Sheets) is a U.S. company that provides over-the-counter trading services, including two segments, OTCQX and OTCQB, whose services include securities quotation Its services include quotation and trading of securities and the publication and dissemination of related information.

According to the SEC, OTCQX is not a stock exchange, but rather a service designed to facilitate communication among independent brokers who are qualified to trade securities.