On December 31, 2020, Eastern Time, the New York Stock Exchange announced the initiation of the delisting procedures for China Mobile, China Telecom, and China Unicom.
In response, the China Securities Regulatory Commission issued a formal response on its official website today.
The Securities Regulatory Commission stated that the three Chinese companies have issued American Depository Receipts (ADR) and listed on the New York Stock Exchange for nearly or more than 20 years. They have complied with the rules and regulatory requirements of the US securities market and are generally recognized by investors around the world.
The New York Stock Exchange directly announced the initiation of the delisting procedure for the three companies, which was triggered by the US government's administrative order against the so-called "Chinese Communist military-related enterprises." The US implemented administrative orders for political purposes, completely ignoring the actual situation of relevant companies and the legitimate rights and interests of global investors, and severely undermined normal market rules and order.
The China Securities Regulatory Commission pointed out that the three companies have a huge user base, stable fundamentals, and have an important influence in the global telecommunications service industry, but their overall ADR scale is small, with a total market value of fewer than 20 billion yuan, which is in the total equity of the three companies. The largest proportion is only 2.2%, of which China Telecom only has about 800 million yuan, and China Unicom has only about 1.2 billion yuan.
Due to insufficient liquidity, small transaction volume, and lack of financing functions, even if it is delisted, the direct impact on the company's development and market operation is quite limited.
The China Securities Regulatory Commission firmly supports the three companies in safeguarding their rights and interests in accordance with the law and believes that they can properly deal with the adverse effects of administrative orders and delisting measures.
The Securities Regulatory Commission emphasized that the status of the United States as an international financial center depends on the trust of global companies and investors in the inclusiveness and certainty of its rules and systems. Recently, some political forces in the United States have not hesitated to damage the global status of the US capital market and continue to suppress foreign companies listed in the United States for no reason. This reflects the arbitrariness, willfulness, and uncertainty of the rules and systems. This is unwise. It is hoped that the US will respect the market, respect the rule of law, and do more to maintain the order of the global financial market, protect the legitimate rights and interests of investors, and contribute to the stable development of the global economy.
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