China Telecom set to raise $8.4bn in Shanghai after being booted off NYSE

China Securities Regulatory Commission laments “groundlessly suppression of foreign companies listed on the US markets” as Beijing sets new narrative.

By João Marques Lima

Founder and Editor, The Tech Capital

2 Mins

July 29, 2021 | 1:00 AM BST

Chinese state-run China Telecom (HKG: 0728) has been granted permission by the China Securities Regulatory Commission (CSRC) to list on the Shanghai Stock Exchange (SSE).

The green light from Beijing comes six months after the operator was booted off the New York Stock Exchange (NYSE) alongside China Mobile and China Unicom under an executive order signed by former President Donald Trump prohibiting US investors from holding shares in companies with suspected ties to the Chinese military.

In the SSE, China Telecom said it expects to raise around 54.4 billion yuan ($8.4 billion) through the sale of up to 12.1 billion Class A-shares, representing 13% of its equities after the listing.

China Telecom was one of the first state-owned Chinese companies to IPO in the NYSE in 2002, the same year when it was listed on the Hong Kong Stock Exchange.

The CSRC said last March of the NYSE delisting: “The role of the US as an international financial centre, is built on the trust of the global enterprises and investors in the inclusiveness and certainty of its rules and institutions.

“The recent move by some political forces in the U.S. to continuously and groundlessly suppress foreign companies listed on the US markets, even at the cost of undermining its own position in the global capital markets, has demonstrated that US rules and institutions can become arbitrary, reckless and unpredictable. It is certainly not a wise move.

“We hope that the US side could show respect for the market and reverence for the rule of law, do more things that can benefit the order of global financial markets, the legitimate rights of investors, and the stability and development of a global economy.”


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João Marques Lima

Founder and Editor, The Tech Capital

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