China’s biggest chip maker, SMIC, to withdraw from New York Stock Exchange as trade spat with US spills over to technology sector
- The sudden delisting comes as Washington steps up efforts to cut off US technology from China
- Company attributes move to low US trading volumes and the high cost of an NYSE listing
China’s biggest maker of semiconductors is to withdraw from the New York Stock Exchange, citing low trading volumes and burdensome costs – a move that ends its 15-year US listing as the trade war with the US spills over into the technology sector.
Semiconductor Manufacturing International Corp (SMIC) said on Friday evening that it had notified the NYSE of its intention to apply on June 3 to delist its American depositary receipts (ADRs) from the bourse.
In a filing to the Hong Kong stock exchange, where its shares are listed, SMIC cited low trading volumes of its ADRs and the high costs of maintaining the listing and complying with reporting requirements and related laws.
The voluntary delisting is expected to happen after June 13, and trading of the chip maker’s US securities will shift to the over-the-counter market, the statement said.
The board has already approved the move, according to the filing, although SMIC also will need permission to implement its plan from the US Securities and Exchange Commission (SEC).