NYSE to delist ADRs of China Mobile, China Unicom (Hong Kong) and China Telecom

HONG KONG: China Mobile, China Unicom (Hong Kong) and China Telecom notified to the Hong Kong Stock Exchange that they expect the New York Stock Exchange (NYSE) to delist their American Depositary Shares (ADSs).

The move will be effective 10 days after the exchange files a Form 25 to the U.S. Securities and Exchange Commission, according to the filings.

The delisting stems from investment restrictions put in place by former U.S. President Donald Trump targeting Chinese technology firms.

The NYSE said in January, after some flip-flopping, that it was determined to remove the three companies’ shares.

The three companies filed with the NYSE a written request for a review of the determination on January 20, 2021, soon after Joe Biden took office. But the exchange affirmed the determination on Thursday.

The delisting impact on the three telecom companies would be quite limited, given their small amount of U.S.-traded shares, according to the China Securities Regulatory Commission.

China Mobile’s ordinary shares held in the form of ADSs amounted to approximately 2 percent of its total issued share capital as of December 31, 2020; for China Telecom it’s about 0.14 percent as of Thursday; for China Unicom (Hong Kong) it’s roughly 0.2 percent at the end of April 2021.

In their filings, China Mobile, China Unicom (Hong Kong) and China Telecom reiterated that they have complied strictly with U.S. laws and regulations since their listing on the NYSE in 1997, 2000 and 2002 respectively.

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