In the United States, it is considered part of “decoupling”. In China, it is described as “homecoming”. China Telecom, the state-owned giant, will debut this month in Shanghai in what is expected to be the country’s biggest share listing in a decade. The company was ejected from the New York Stock Exchange along with state-run peers China Mobile and China Unicom in January to comply with an executive order signed by former US president Donald Trump over their alleged ties to the Chinese military. Beijing is keen to use China’s own capital markets to shield strategic firms from a hostile US. But since China Telecom is already listed in Hong Kong, the Shanghai Stock Exchange is the only logical choice. Paradoxically, pressure from regulators in both countries means “homecoming” will be going full steam ahead. US regulators will set new disclosure rules for Chinese firms seeking American initial public offerings (IPOs) and have threatened to delist those not meeting their accounting standards. Beijing has tightened restrictions on Chinese companies seeking listings overseas. Companies barred from the US are being enticed to raise capital in Shanghai or Shenzhen; others may also move to Hong Kong for IPOs. The total market capitalisation of Chinese firms listed on American exchanges is about US$2 trillion, and their loss due to geopolitical tensions can only be Hong Kong’s gain. This is one reason Hong Kong officials are rubbing their hands with glee. In a recent exclusive interview with the Post , Financial Secretary Paul Chan Mo-po promised a safe haven and no “sudden regulatory shocks” for mainland companies seeking to raise capital here. China Telecom’s IPO in Shanghai could raise up to US$8.4 billion, making it the biggest on the mainland since the Agricultural Bank of China debuted in both Shanghai and Hong Kong in 2010. China Telecom was one of the first state-owned enterprises to list in the US in 2002. Its IPO will serve as an indicator of how investors evaluate other “homecoming” firms as a number of others, including China Mobile, are expected to follow. A deep pool of household savings will encourage more Chinese companies to tap the domestic markets, adding depth to those markets while making the US less attractive.