The New York Stock Exchange will delist China’s three large telecom carriers, following a U.S. government order barring Americans from investing in companies it says help the Chinese military.
This will result in China Mobile Ltd. —which is among the most valuable of China’s listed state-owned enterprises—being kicked off the Big Board after more than two decades, after the privatization of its predecessor in 1997.
The NYSE decision is the latest setback for U.S. investors in these companies, which rank among the largest global telecommunications providers but have lagged behind the broader markets since the companies began listing here more than two decades ago.
U.S. shares in China Mobile, the largest of the three by market value, declined 29% over the past year, according to FactSet, while China Telecom Corp. dropped 30% and China Unicom Hong Kong Ltd. fell 39%. Over the same span, the S&P 500 index returned 18% and the communications-services sector of the MSCI World Index rose 22%. All figures reflect total returns, including dividends.
Over the past decade, China Mobile shares have declined 15% including dividend payments, FactSet data show, while China Telecom has dropped 32% and China Unicom has fallen 54%. The S&P 500 has gained 267% on the same basis and the MSCI World communications sector has gained 165%.
