Top Chinese Chipmaker SMIC Gets Reprieve from New York Delisting
What’s new: Semiconductor Manufacturing International Corp. (SMIC), China’s large maker of microchips, said it has received a brief reprieve after being told last week that its shares would immediately be barred from the OTCQX Market, an over-the-counter Wall Street securities market.
SMIC said it was notified by the OTCQX Market operator that trading in its shares could continue until Feb. 1, according to an announcement to the Hong Kong Stock Exchange on Sunday. As a result, trading in the shares, which had been suspended last Wednesday, was being allowed to resume on Jan. 11.
Background: SMIC has gotten caught up in a campaign against Chinese tech companies by the outgoing administration of U.S. President Donald Trump, which is trying to stymie the group by cutting off its access to U.S. technology.
As part of that campaign, Trump also signed an executive order in November banning trade by any Americans in shares of companies with alleged ties to China’s military effective Jan. 11. The U.S. has put SMIC’s name on a list of companies with ties to the Chinese military, though the company has repeatedly denied such ties.
In the latest announcement on its delisting reprieve, SMIC said the OTCQX Market operator “was notified by its regulator” that it had changed its position on the effective date of Trump’s executive order. The new date would come after Trump leaves office on Jan. 20 and the new administration of President-elect Joe Biden takes office.
Contact reporter Yang Ge (firstname.lastname@example.org) and editor Joshua Dummer (email@example.com)
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