China securities regulator says NYSE delistings ‘politically motivated’, will have ‘limited’ impact

The New York Stock Exchange will be delisting China Mobile, China Unicom Hong Kong and China Telecom

But the direct impact on the companies’ development and market operation is ‘quite limited’, China’s securities regulator says

Reading Time:2 minutes

5G active antenna units with logos of China Mobile and Huawei are seen in front of a National People's Congress (NPC) conference centre in Luoyang, China on February 27, 2019. Photo: Reuters

Published: 9:49am, 4 Jan 2021Updated: 9:49am, 4 Jan 2021

China’s securities regulator on Sunday said New York Stock Exchange (NYSE) plans to delist three Chinese telecoms firms are “political” and that the impact will be “limited”.

The NYSE on Thursday said it would delist China Mobile, China Unicom Hong Kong and China Telecom following President Donald Trump’s move in November to bar US investment in 31 firms that Washington says are owned or controlled by the Chinese military.

The China Securities Regulatory Commission, in a question and answer posted on its official website, said the plans are “politically motivated”.

The move “completely disregards the actual situation of the relevant companies and the legitimate rights and interests of global investors and severely undermines normal market rules and order,” the Chinese regulator said.

The overall scale of the American Deposit Receipts listed by the three companies is small, it said, with a total market value of less than 20 billion yuan (US$3.07 billion), or 2.2 per cent of the total equity of the three firms.

“Even if delisted, the direct impact on the companies’ development and market operation is quite limited,” the regulator said.