China Mobile’s share price has retreated following a surge after it listed on the Shanghai Stock Exchange.
The world’s largest mobile operator by total subscribers was delisted from the New York Stock Exchange (NYSE) following the Trump administration’s decision to restrict investments in Chinese technology firms.
China Mobile’s shares increased by ~8.5 percent from its offering price of 57.58 yuan but over the next six hours had returned to around its offering price:
The NYSE ceased trading of the operator’s shares on 11 January 2021 before it was delisted in May 2021 following a failed appeal for the stock exchange to review its decision.
China Mobile, China Telecom, and China Unicom were all delisted with the US Department of Defense stating the operators had significant connections to Chinese military and security forces.
While the successive Biden administration has taken a less inflammatory and more diplomatic position towards Beijing, it has maintained tough policies and sanctions over disagreements including the country’s “genocidal” treatment of Muslims in the Xinjiang Uyghur Autonomous Region, military exercises around Taiwan, the Hong Kong national security law, coronavirus, trade practices, hacking, and more.
Last month, Chinese ride-hailing giant DiDi Global announced that it would be removing its shares from the NYSE and moving to Hong Kong following pressures from Beijing.
DiDi was targeted by Chinese authorities – including ordering app stores in China not to serve the company’s software – following its $4.4 billion listing on the NYSE.
Beijing will be keen for China Mobile’s listing to be a success to entice more homegrown companies to list on the country’s own stock exchanges.
(Photo by Li Yang on Unsplash)
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