(Yicai Global) Jan. 7 -- Chinese integrated circuit maker Semiconductor Manufacturing International Corp. will withdraw from the US OTCQX market when trading ends on Jan. 6, according to administrative orders and regulatory guidelines, per a notice from the OTCQX market’s operator yesterday, the firm announced yesterday.
The Shanghai-based firm’s stock price [HKG:0981] traded 0.68 percent up at HKD22.15 (USD2.86) per share in the early afternoon, down from earlier highs.
The firm’s inclusion on the US list of 'Communist Chinese Military Companies' will prevent US investors from buying and selling the firm’s securities and derivatives, the firm said on Dec. 4. US investors will be no longer allowed to buy the firm’s negotiable instruments 60 days after Dec. 4 or buy and sell the firm’s securities 365 days after that.
SMIC’s American Depositary Receipts began to trade on the OTCQX, the US financial market for over-the-counter securities, after delisting from the New York Stock Exchange in 2019. The firm’s securities will no longer be able to quote or trade on the OTC Link Alternative Trading System when it ends trading on the OTCQX market on Jan. 6.
Depositary receipts are negotiable securities issued by a depository bank abroad. DRs trade on the bank’s domestic market, representing a specified number of shares of investment in a local company's stock and trade in that country just as any other shares do. A depository bank is one that facilitates investment in securities.
Editor: Ben Armour, Xiao Yi