China's securities regulator responds to US delisting of Chinese companies

BEIJING - The delisting of three Chinese companies by the New York Stock Exchange (NYSE) under a US government order disregarded related companies' actual conditions and global investors' legitimate rights and interests and severely disrupted market order, a spokesperson for the China Securities Regulatory Commission said Sunday.

The spokesperson made the remarks in response to the NYSE's announcement Thursday to delist China Telecom Corporation Ltd, China Mobile Ltd and China Unicom (Hong Kong) Ltd.

Having issued American Depositary Receipts (ADRs) and been listed on the NYSE for nearly or over two decades, the three Chinese firms have complied with the rules and regulations of the US securities market, and are widely acknowledged by investors worldwide, the spokesperson said.

The delisting of the Chinese companies on politically-motivated administrative order of the US government seriously breached market rules and order, the spokesperson said.

Given the three companies' large user base, stable operation, significant influence on the global telecommunications service industry, as well as the small proportion of ADRs in their total shares, the act of delisting will have very limited impact on their market operation and development, according to the spokesperson.

The commission will firmly support the three firms to protect their rights and interests, and believes that they will handle the adverse impact appropriately, said the spokesperson.

Some US politicians, at the cost of damaging the global status of their own capital market, have recently made moves to suppress US-listed foreign companies constantly. These moves showed the randomness, arbitrariness and uncertainty of the country's rules and regulations, and were therefore unwise, the spokesperson said.

"We hope the US sides will respect the market and the rule of law, and do more to protect the order of the global financial market, safeguard investors' lawful rights and interests and promote the steady development of the world economy," the spokesperson added.