On December 31, 2020 EDT, the New York Stock Exchange announced the start of delisting procedures for China Mobile, China Telecom and China Unicom.
In response, China Securities Regulatory Commission released an official response on its official website today.
The CSRC said that the three Chinese companies have issued American Depository Receipts (ADRs) and listed on the New York Stock Exchange for nearly or more than 20 years. They have been complying with the rules and regulatory requirements of the US securities market and are generally recognized by global investors.
The CSRC pointed out that the three companies have a huge user base, stable fundamentals, and have an important influence in the global telecommunications service industry. However, the overall scale of their ADRs is small, with a total market value of less than 20 billion yuan, accounting for only 2.2% of the total equity of the three companies, of which China Telecom only has about 800 million yuan and China Unicom only has about 12 billion yuan RMB 100 million.
Due to the lack of liquidity, small trading volume and lack of financing function, even if delisted, the direct impact on the company's development and market operation is quite limited.
The CSRC firmly supports the three companies to safeguard their rights and interests in accordance with the law, and believes that they can properly cope with the adverse effects caused by administrative orders and delisting measures.
The CSRC stressed that the status of the United States as an international financial center depends on the trust of global enterprises and investors in the inclusiveness and certainty of its rules and regulations. Recently, some political forces in the United States do not hesitate to damage the global status of the U.S. capital market and continue to suppress foreign companies listed in the United States for no reason, reflecting the arbitrariness, willfulness and uncertainty of the rules and regulations. This is unwise. It is hoped that the US side will respect the market and the rule of law, and do more to safeguard 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.