The action took effect in May this year after the board of directors decided to terminate the ADR, later issuing a notice to the ADR agency BNY Mellon.
China Unicom Issues 4.2 Million American Depositary Securities
The announcement shows that on July 20, 2021, China Unicom issued approximately 4.2 million American depositary securities, accounting for approximately 0.1% of the company's total issued shares. Hence industry insiders think that delisting will have little impact on the firm.
At the 2021 SALT New York conference, which was held earlier this week, one of the panels on the main stage discussed the best macro shifts coming out of the pandemic and investing in value amid distress. The panel featured: Todd Lemkin, the chief investment officer of Canyon Partners; Peter Wallach, the managing director and Read More
Holders of ADRs have the right to return the shares they hold to BNY Mellon in exchange for the company's common stock in accordance with the terms and conditions of the depository agreement at least before the termination date. The trustee's securities can be exchanged for 10 common shares of the company. The company's common stock can be traded on the Hong Kong Stock Exchange.
The delistings of three of China's biggest telecommunications companies began at the end of 2020 as the American bourse sought to comply with an executive order barring trade with companies holding ties to China's military.
Article by Qasim Khan, Equal Ocean