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Chinese Companies, US Investors Could Accelerate Decoupling Amid NYSE Delisting

China China Business & Economy Chinese military Chinese stocks delist New York Stock Exchange

Chinese Companies, US Investors Could Accelerate Decoupling Amid NYSE Delisting

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News Analysis The trend of Chinese companies leaving U.S. stock exchanges is likely to accelerate after the New York Stock Exchange announced plans to boot three Chinese telecom companies from the exchange. This is especially the case for state-owned enterprises (SOEs), as there’s a higher risk that SOEs are connected to the Chinese Communist Party (CCP)’s military. All three companies to be delisted from the NYSE—China Mobile, China Telecom Corp., and China Unicom—are state-owned. Shanghai-based Chinese major chipmaker Semiconductor Manufacturing International Corp. (SMIC) was also removed in early January 2021 from U.S. over-the-counter trading market OTCQX Market. SMIC is also partially state-owned. Chinese companies’ public listing status have an uncertain future after U.S. Congress passed the Holding Foreign Companies Accountable Act in late 2020. The bill requires companies listed on U.S. exchanges to declare if they are owned or controlled by a foreign government. In addition, companies could be delisted …

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