SMIC was withdrawn from the U.S. OTCQX OTC market-Electronic Engineering Album

On the evening of January 6, SMIC issued an announcement stating that it was notified by OTC Markets Group, the operator of the OTCQX market, that in accordance with administrative orders and relevant regulatory guidelines, the company will be withdrawn from OTCQX at the end of the transaction on January 6 (Wednesday) In the market, the company’s securities (SIUIF, SMICY) will no longer be eligible to quote or trade on OTC Link ATS.

It is understood that OTCQX is the financial market for over-the-counter securities in the United States. After SMIC delisted from the New York Stock Exchange in 2019, the company’s American Depositary Receipts shares were traded on the OTCQX market.

SMIC’s withdrawal from the OTCQX market was affected by previous US administrative orders. SMIC announced on December 4 last year that the company was included in the US list. Americans will be restricted from trading in securities issued by SMIC and related derivatives: after 60 days from December 4, 2020 Beijing time, Americans cannot buy company securities; after 365 days, the United States Persons cannot trade company securities.

On the evening of December 20, SMIC also announced that the US Department of Commerce had included SMIC and some of its subsidiaries and shareholding companies in the “Entity List” on the grounds of protecting US national security and diplomatic interests.

After the company is included in the “entity list”, in accordance with relevant U.S. laws and regulations, for products or technologies that are applicable to the U.S. Export Control Regulations, suppliers must obtain an export license from the U.S. Department of Commerce before they can supply to the company; This matter has a significant adverse impact on the research and development and capacity construction of advanced processes of 10nm and below.

Earlier, British FTSE Russell also announced that since the opening of the market on January 7, the stocks of SMIC and other three companies will be removed from the FTSE Global Stock Index Series and the FTSE China A-Share Index.

After delisting from the US privatization, SMIC listed on the Sci-Tech Innovation Board in July last year. At today’s close, SMIC’s Hong Kong stocks soared 19% in late trading, but still rose more than 12% at the close. It also rose 3% on the Science and Technology Innovation Board.

Editor in charge: Yvonne Geng

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