Trump's 'Mongni' Causes China's Top 3 Telecom Companies to Be Delisted from the New York Stock Exchange

Measures Following Trump Executive Order
Minimal Impact Expected from Simultaneous Listing on Hong Kong Market

[Asia Economy New York=Correspondent Baek Jong-min] The three major Chinese telecommunications companies will be delisted from the New York Stock Exchange in the new year.

The New York Stock Exchange (NYSE) announced on the evening of the 31st of last month (local time) that it will suspend trading of the American Depositary Receipts (ADRs) of China Mobile, China Unicom, and China Telecom.

This measure follows an executive order issued by the Trump administration in November last year, which banned Americans from investing in companies linked to the Chinese military. The U.S. Department of Defense also listed these three state-owned telecommunications companies as entities connected to the Chinese military.

China Mobile, which was the first Chinese state-owned enterprise to be listed on the New York Stock Exchange in the form of ADRs in 1997, will disappear from the market after 24 years.

China Mobile's stock closed at $28.54 in its last trading session last year. The stock price started the year at $41 but could not avoid a decline.

U.S. media analysis suggests that the delisting from the New York Stock Exchange will not have a significant impact on these companies. The New York Times evaluated that with the rapid growth of the Shanghai and Hong Kong stock markets, Chinese companies face no major difficulties raising capital in China instead of Wall Street in New York. All the companies being delisted are also listed on the Hong Kong Stock Exchange.

According to FactSet, China Mobile ADRs averaged about 2.1 million shares traded daily over the past three months, whereas 34 million shares were traded on the Hong Kong Stock Exchange during the same period.

This content was produced with the assistance of AI translation services.