![China Mobile, which advertises the next-generation network 5G era, will be delisted on the New York Stock Exchange on the 11th of this month (East US time) amid pressure from the United States, which has questioned China's'technology stealing'. [사진 출처 = 차이나모바일]](https://i0.wp.com/file.mk.co.kr/meet/neds/2021/01/image_readtop_2021_6141_16097284504495008.jpg?w=560&ssl=1)
China Mobile, which advertises the next-generation network 5G era, will be delisted on the New York Stock Exchange on the 11th of this month (East US time) amid pressure from the United States, which has questioned China’s’technology stealing’. [사진 출처 = 차이나모바일]From the start of the new year, news came out that the New York Stock Market, which was in the heart of the global stock market, was in danger of delisting the state-run oil company in China as it accelerated its withdrawal of Chinese companies. In spite of the “China risk,” investors, who have bought Chinese stocks and ETFs, are also feeling anxiety. As the next administration of Joe Biden, which will be launched in the United States in mid-month, also announced that it would maintain the Chinese pressure policy imposed by the Donald Trump administration, China mentioned’revenge’.
On the 3rd (local time) Bloomberg Intelligence predicted that the stocks of’China’s top three state-owned oil companies’, which were traded on the New York Stock Exchange (NYSE), are likely to receive notification of delisting sooner or later. Researcher Hennick Feng said, “China’s largest overseas crude oil producer’China Ocean and Petroleum Corporation’ (CNOOC, hereinafter referred to as the CEO of the New York Stock Market), PetroChina (PTR) and China Petroleum Chemical (SNP) are key companies related to the Chinese military. As it is classified as, it is considered as a company with a high risk of becoming the next runner of Chinese mobile carriers.”
On the 31st of last month, NYSE announced that it would delist China’s three major mobile carriers from the 7th to the 11th over the next five days. The news agency, China Mobile (CHL), China Telecom (CHA), and China Unicom Hong Kong (CHU), has been linked with the People’s Liberation Army of China and has been suspected of threatening US national security. In response, the China Securities Regulatory Commission (CSRC) issued a statement on the 3rd and said, “The delisting of our mobile telecommunications companies traded on the US stock market is an unfounded political repression of foreign companies in the United States, a very arbitrary and unpredictable action.” .
However, the notification of the NYSE’s delisting was in accordance with a presidential executive order in November last year stating that President Trump “prohibits American investment in companies affiliated with and affiliated with the Chinese Communist Party and the People’s Liberation Army.” At that time, President Trump targeted 31 major Chinese information technology (IT) companies such as China Mobile, China Telecom, and security company Hike Vision. On December 3, less than a month before, Chinese state-run semiconductor company SMIC and China Ocean Petroleum Corporation , China International Electronic Business Center Group, and China Construction Engineering Corporation. As a result, a total of 35 places are subject to investment bans, and investment by Americans will be banned from the 11th. Not all 35 Chinese companies targeting the United States are listed on the New York Stock Exchange. It is mainly listed on the mainland Shanghai, Shenzhen Stock Exchange and Hong Kong Stock Exchange.
The’China Risk’ reflecting the US-China conflict over the’delisting of Chinese companies’ and policy uncertainties peculiar to the CCP has a negative impact on individual Korean investors. This is because there are many cases of investing through China-related ETFs even if the stock is not directly invested.
China Oceanic Oil Corporation (CNOOC), which is highly likely to be delisted on the New York Stock Exchange this month, is falling more than 3% in the morning trading of the Hong Kong stock market as of the 4th (right). On the left is the company’s stock price in the New York Stock Market last year (left).Representatively, among the top constituents of the’TIGER China HSCEI’ ETF traded on the Korean stock market, China Mobile (3.74% of the proportion) and 14th place are China Ocean Petroleum Corporation (1.79%). The former has been announced delisting, and the latter is a highly promising company. In addition, tencent (8.85%), 6th (4.56%), and Alibaba (4.16%), ranked 7th, ranked 1st Tencent (8.85%), leading IT conglomerates on the intensive regulations of the Chinese authorities in the name of’anti-monopoly investigation’. to be.
The `KODEX China H` ETF is similar. The 8th place is China Mobile (3.82%), and the 13th place is China Ocean and Oil Corporation (1.83%). In addition, Tencent (9.08%) in the first place, Meituo Dienping in the sixth place (4.67%), and Alibaba in the seventh place (4.26%). Both ETFs are products that invest in Chinese companies listed on the Hong Kong Stock Exchange.
First of all, Chinese corporate stocks have three major risks. △ Inflating the accounting books peculiar to Chinese companies, highlighted by the delisting of’Lui Xing Coffee’ △ Uncertainty of policy led by the Communist Party led by the indefinite suspension of listing on the Hong Kong and Shanghai stock markets of Alibaba’s subsidiary △’Concerns about US national security threats from China’ A typical example is the delisting of the New York Stock Exchange amid the conflict between the US and China.
Korean TIGER China HSCEI (left) and KODEX China H ETF investing in Chinese companies listed on the Hong Kong Stock Exchange. The stock price is rising as of 11 am on the 4th, but it is not free from’China risk’.When Chinese companies are delisted on the New York Stock Exchange, it will be difficult to raise dollar funds. For this reason, news came out last summer that after the delisting of Ruising Coffee, China’s large online travel agency Ctrip (TCOM) will voluntarily delist on the New York Stock Exchange and trade its shares only in the Hong Kong and mainland stock markets. Stocks are still traded on the Nasdaq Stock Exchange.
The Chinese government has also mentioned the possibility of retaliation, but it is not known what kind of action will be followed. On the 2nd, the Ministry of Commerce of China warned that it will take necessary steps to firmly protect the legitimate rights and interests of Chinese enterprises. China previously announced a blacklist rule for’unreliable foreign companies’ in September last year. At that time, the Ministry of Commerce said, “We will block trade and investment in China for foreign companies and individuals that harm China’s sovereignty, security, and development profits, and restrict corporate employees from entering China with enormous fines.” Did. However, according to the state media Global Times at the time, it is known that the British HSBC Bank and the US large shipping company FedEx (FDX) rose.
The New York Stock Market is not very incentive to voluntarily delist as it is a channel for Chinese companies to attract the dollar. China’s large online travel agency Ctrip announced that it was considering voluntarily delisting last summer, but it still remains on the NASDAQ Stock Exchange (stock price flow for the last month).Meanwhile, US President-elect Biden held a press conference in Wilmington, Delaware on the 28th of last month after a videoconference with the National Security Officer of the Takeover Committee, saying, “The United States encourages the Chinese government to act responsible for trade, technology, and “We must be with the right allies,” he stressed, “We will become stronger and more effective in any matter that matters in the US-China relationship.” Biden said he would keep the Trump government’s tariff card in China for the time being.
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