4

Recently there was news about how US government might delist Chinese companies. I was wondering since this is not like delist by going private, nor by government involvement (nationalizing). What would happen to your shares if the company actually got delisted on the NYSE?

My assumption is that the stock would still be available just not in the U.S. but your share would got wipeout or liquidated if this happens?

  • How are the Chinese companies generally listed, as an ADR ? – Raj Nov 18 '19 at 14:55
2

Keep in mind, that this is a hypothetical situation at this point, raised by the Trump Administration as a possibility.

A Reuters article by John Ruwitch and Alun John explains what it could mean. This type of move is essentially unprecedented, but they offers a couple of possibilities for how it might be done:

  • They could seek funding from elsewhere and buy out the shares from the stockholders.

  • They could become listed on another exchange (perhaps London or Hong Kong) and offer shares of new stock in exchange for the old stock.

  • Would they be legally obligated to do either? I don't imagine it's the company's responsibility to provide liquidity or a market for its own shares. – chepner Oct 2 '19 at 15:19
  • 2
    "They could seek funding from elsewhere and buy out the shares from the stockholders." Why on earth would they do that? – RonJohn Oct 2 '19 at 15:47
  • 1
    @RonJohn They wouldn't do that. The Reuters article doesn't say that would happen, only the second bullet point. – Ellie Kesselman Nov 18 '19 at 12:20

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.