Translation in English: Soaring by 770 billion! "State-owned enterprises delisti

By the beginning of this year, a total of 10 state-owned enterprises (SOEs) in our country have withdrawn from the U.S. stock market in three batches.

Currently, the aftermath of the delisting continues to unfold, but it is evident that these companies have not been affected in their development after delisting; instead, their market value has been continuously increasing.

In the year or so since the delisting, the U.S. stock market has been on a continuous decline, with fewer and fewer companies choosing to go public in the U.S., potentially relinquishing its past position as the financial leader.

01, Market Value Increase of 770 Billion

Since the U.S. securities regulatory authorities have specifically targeted Chinese companies listed in the U.S., many Chinese companies have chosen to relist in places like Hong Kong and Europe, and Russia has also opened trading for our Hong Kong stocks.

As the first batch of SOEs to delist from the U.S. stock market—China's three major operators have seen their stock prices continuously rise, especially in the past week, with a significant surge in market value.

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It is clear that the delisting has not caused any impact.

China Unicom's stock price rose for four consecutive days last week, reaching a peak of 6.24 yuan.

China Unicom was one of the first SOEs to delist from the U.S. stock market; they exited the U.S. market in October 2021, with an A-share price of 3.5-3.8 yuan at the time of delisting. Compared to that period, the stock has now increased by more than 50%.

China Mobile has performed even better, setting a new high since its listing on the A-share market.However, as it has just recently been listed on the A-share market, it is not possible to compare its stock price from when it delisted from the United States. Nevertheless, we can examine its performance in Hong Kong.

China Mobile currently has a market value of 1,856.5 billion yuan, with the current quotation in the Hong Kong stock market at 62 Hong Kong dollars per share. In October 2021, when it delisted from the U.S., its stock price in Hong Kong was between 42 and 45 U.S. dollars.

That is to say, since delisting from the U.S. stock market, the stock price in Hong Kong has actually increased by more than 30%, with the market value growing by approximately 500 billion yuan. Similarly, China Unicom's market value has increased by about 70 billion, and China Telecom's performance is also similar, with a market value increase of over 200 billion.

The combined market value increase of the first batch of three delisted companies is now over 770 billion yuan.

Perhaps one day in the near future, Americans will realize that it is not that Chinese companies cannot do without the U.S. stock market, but rather that the U.S. stock market cannot plunder Chinese enterprises.

02, Three Batches of Delistings

Starting from March of last year, the U.S. Securities and Exchange Commission (SEC) used audit as a pretext to put one Chinese company after another on the delisting list, and threatened that by 2024, Chinese concept stocks must submit relevant documents as required by the U.S., or these Chinese companies will be forcibly delisted from the U.S. stock market.

At the beginning, the stocks of these companies were greatly impacted, but as Chinese companies found ways to list in Hong Kong, the decline in stock prices also decreased.

Just this year, two major Chinese aviation enterprises in China almost simultaneously announced their intention to withdraw from the U.S. stock market, bringing the number of state-owned enterprises delisting from the U.S. stock market to 10.

Perhaps in the near future, more and more Chinese enterprises will withdraw from the U.S. stock market. The U.S. stock market faces the danger of losing its leading position in the investment market.03, Decline in Status of U.S. Stocks

U.S. stocks were once considered the largest financial and investment market in the world, but now it's like the setting sun that looks beautiful but is nearing dusk.

In terms of investment, due to the continuous interest rate hikes by the U.S. Federal Reserve, the U.S. stock market has plummeted sharply.

All three major U.S. stock indices fell in 2022, with the Nasdaq dropping at an annual rate of over 30%. Even though there was a certain rebound in the U.S. stock market since November last year, the recent intention of the Federal Reserve to continue raising interest rates has led to a renewed decline in U.S. stocks, with the gains of the Dow Jones Industrial Average this year being completely erased.

In stark contrast, although China's A-shares and Hong Kong stocks also fell last year, the decline was not as significant, and the recovery pace this year has been much faster.

In the financing sector, the U.S. stock market has stepped down from the top spot, with China's IPO financing amount accounting for more than half of the global total last year.

Now, not only are Chinese companies no longer listing in the U.S., opting instead to trade in Europe through GDRs, but even Middle Eastern oil companies have started considering listing in Hong Kong. This could set a precedent, encouraging more foreign quality companies to list in Hong Kong.

04, Stock Exchange Rankings

By the end of last year, the total assets of the Shanghai Stock Exchange reached 46.4 trillion, while the Shenzhen Stock Exchange reached 32.4 trillion, with one ranking third globally and the other fourth. The fifth was the Hong Kong Stock Exchange.

As early as 2007, the Shanghai stock market had already entered the ranks of the world's top ten stock exchanges. In 2014, the Shanghai stock market became the world's fifth-largest exchange, and by 2022, it was ranked third globally, following New York and Nasdaq.Shenzhen Stock Exchange entered the top ten in 2014, jumped to sixth place in 2015, and currently ranks fourth, second only to Shanghai Stock Exchange. Among the top ten exchanges in the world, the United States ranks first and second, and China ranks third to fifth. It is just a matter of time before we surpass the United States.