China’s largest semiconductor maker to delist from the New York Stock Exchange

But trading will continue in Hong Kong.

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China’s largest semiconductor maker to delist from the New York Stock Exchange

China’s largest chipset manufacturer, Semiconductor Manufacturing International Corporation (SMIC), announced last Friday that it had notified the New York Stock Exchange (NYSE) of its intentions to delist the company’s American depositary shares (ADSs).

SMIC was dual-listed on March 18, 2004 on the NYSE and the Stock Exchange of Hong Kong.

This move is due to a number of considerations, including the limited trading volume in the United States relative to its worldwide volume, and the significant administrative burden and costs of maintaining its listing in New York, said the company in its filing with the NYSE.

The company said this decision has nothing to do with the Sino-US trade war, and is not related to Huawei being blacklisted by the US Department of Commerce, according to China News Service, one of the country’s state-owned news agencies.

SMIC began trading at USD 17.50 in March 2004, and was on a steady downward slide thereafter, trading at less than USD 1 in late 2008. It closed at USD 5.24 on Friday.

After delisting from the NYSE, SMIC said it intends to maintain a Level 1 ADR (American depositary receipts) program, which will enable American investors and current shareholders to trade SMIC shares over the counter.

The company added that its securities will be chiefly traded in Hong Kong.

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