China News Service, January 3. According to the website of the China Securities Regulatory Commission, the spokesperson of the China Securities Regulatory Commission responded to a reporter’s question on the New York Stock Exchange’s initiation of the delisting procedures for three Chinese telecom operators. Properly deal with the adverse effects of administrative orders and delisting measures.
A reporter asked: On December 31, 2020, Eastern Time, the New York Stock Exchange ("NYSE") announced the launch of three telecom operators (hereinafter referred to as "three companies"): China Mobile, China Telecom and China Unicom. Delisting procedures.
What is the China Securities Regulatory Commission's opinion on this?
A spokesperson for the China Securities Regulatory Commission said that the three Chinese companies have issued American Depository Receipts (ADRs) and listed on the NYSE for nearly or more than two decades. They have complied with the rules and regulatory requirements of the US securities market and are generally recognized by investors around the world.
The New York Stock Exchange directly announced the initiation of the delisting procedure for the three companies, which was triggered by the US government's administrative order against the so-called "Chinese Communist military-related enterprises."
The US implemented administrative orders for political purposes, completely ignoring the actual conditions of relevant companies and the legitimate rights and interests of global investors, and severely undermined normal market rules and order.
A spokesperson for the China Securities Regulatory Commission emphasized that the three companies have a large user base, stable fundamentals, and an important influence in the global telecommunications service industry.
The overall scale of its ADR 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 has only about 1.2 billion yuan.
Insufficient liquidity, small transaction volume, lack of financing function, even if delisted, the direct impact on company development and market operation is quite limited.
We firmly support the three companies in safeguarding their rights and interests in accordance with the law, and believe that they can properly deal with the adverse effects of administrative orders and delisting measures.
A spokesperson for the China Securities Regulatory Commission said that the status of the United States as an international financial center depends on the trust of global companies and investors in the inclusiveness and certainty of its rules and systems.
Recently, some political forces in the United States have not hesitated to damage the global status of the US capital market and continue to suppress foreign companies listed in the United States for no reason. This reflects the arbitrariness, willfulness, and uncertainty of the rules and systems. This is unwise.
We hope that the US will respect the market, respect the rule of law, and do more to maintain 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.