© Bloomberg. Pedestrians walk past a China Telecom Corp. store on Wednesday, January 6, 2021. in Shanghai, China. The New York Stock Exchange is considering reversing price a second time to delist three major Chinese telecommunications companies after consulting with high-ranking authorities about how President Donald Trump interpreted an executive order on Nov. 12, according to those familiar with the matter People.
(Bloomberg) – China Telecom (NYSE 🙂 plans a new listing in Shanghai as it seeks a new funding channel months after exiting the New York Stock Exchange on the orders of former US President Donald Trump.
The state-owned wireless operator will issue up to 12 billion shares on the stock exchange in mainland China, it said in a statement on Tuesday on the Hong Kong Stock Exchange. The company has not disclosed the prices for the new shares.
The second listing will help China Telecom develop diversified financing channels in both the domestic and foreign capital markets. The domestic fulcrum is likely to aim to neutralize the effects of a delisting in the US along with two other major Chinese telecommunications companies in January. This decision is being contested by the companies.
The NYSE's second assessment of China delistings is causing confusion
Under Trump, the US tried to sever economic ties and deny Chinese companies access to American capital, escalating government interest rate movements in the context of the trade war.
China Telecom will use the proceeds from the listing to build an industrial 5G internet project and strengthen its cloud network. The wireless operator reported net earnings of 20.9 billion yuan ($ 3.2 billion) for 2020 on Tuesday, with estimates from analysts missing. Operating income rose 4.7% to a better than expected 393.6 billion yuan.
The Shanghai listing plan has to be approved by China's Securities Commission and there are no guarantees that it will continue, the company said.
© 2021 Bloomberg L.P.
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