What the Delisting of Chinese ADRs Means for Investors

The New York Stock Exchange will start to delist American depositary receipts in China’s three big telecom operators

The tech battle between the U.S. and China has battered TikTok and Huawei and startled American companies that produce and sell in China. WSJ explains how Beijing is pouring money into high-tech chips as it wants to become self-sufficient. (Originally published Sept. 3, 2020) Video/Illustration: George Downs/The Wall Street Journal

In the coming days, the New York Stock Exchange will start to delist American depositary receipts in China’s three big telecommunications operators. Here are some of the key questions this raises for investors.

What does delisting mean?

Delisting means shares are removed from a stock exchange and investors can no longer buy or sell them there. A delisting can be voluntary or involuntary. For example, in 2019 China’s Semiconductor Manufacturing International Corp. , a big chip maker whose shares mostly traded in Hong Kong, scrapped its less-active listing on the NYSE. Conversely, last year the Nasdaq Stock Market forced China’s Luckin Coffee Inc. to delist after an accounting scandal.

In this case, the NYSE will delist ADRs from China Mobile Ltd. , China Telecom Corp. and China Unicom (Hong Kong) Ltd. against the companies’ wishes.

What are Chinese ADRs?

To Read the Full Story

Continue reading your article with
a WSJ membership