Shares in mobile carriers surge after NYSE cancels delisting
Shares of Chinese mobile carriers listed on the Hong Kong (HK) stock exchange surged today after the New York Stock Exchange (NYSE) cancelled plans to delist China Mobile, China Telecom and China Unicom.
NYSE officials made the decision "in light of further consultation with relevant regulatory authorities," according to a statement.
HK-listed China Mobile, with the world’s largest mobile carrier subscriber base, jumped more than 5 percent to close at 46.1 Hong Kong dollars (US$5.95). Smaller carriers China Unicom and China Telecom surged 8.5 and 3.35 percent, respectively.
The news also lifted domestic capital markets, especially high-tech chip manufacturers, some of which face strict export regulations from the United States government.
Last month, the NYSE announced it would delist the three carriers in the wake of the US government's November move to block investment in 31 firms deemed to be controlled by the Chinese military.
Even if the delisting had been enacted, its effect would have been more symbolic than meaningful, because most of the three carriers' operations and customers are in China, according to a note by Pacific Securities.
China's foreign ministry had called the planned delisting "unwise."