China Mobile shares rise in Shanghai debut after US exit

Generating $7.7 billion (£5.7 billion) in China’s largest public offering in a decade, China Mobile shares have soared since they began trading in Shanghai.

The stock rose 9.4% in the first hour of trading before pulling down in the afternoon. China Mobile’s smaller competitors, China Telecom and China Unicom have already relocated to China.

Following a Trump-era move to prohibit investment in Chinese technology companies, the three companies were delisted from the New York Stock Exchange.

China Mobile’s Hong Kong-listed shares rose in early trading after the company said that it would proceed with a plan to buy back up to 2.05 billion shares worth more than $13 billion.

According to Nina Xiang, author of the book US-China Tech War, the Chinese government would have ensured that China Mobile’s Shanghai debut went smoothly.

As tensions between Washington and Beijing persist, President Joe Biden has maintained the Trump administration’s stance of restricting investments in Chinese technology enterprises.

“There are dozens of Chinese companies listed on US exchanges that might seek a listing in Hong Kong this year to ensure their shares remain publicly traded in case the two countries can’t reach a solution for Chinese firms to remain listed in the US,” Ms Xiang said, adding that more US-listed Chinese firms may take similar steps to protect their share listings.

The proceeds from the IPO would be used to fund projects such as premium 5G networks, cloud infrastructure, and artificial intelligence software, according to the company.

By total subscribers, China Mobile is the world’s largest mobile network operator.

Last month, Didi Global, the Chinese ride-hailing behemoth, announced its intention to delist from the New York Stock Exchange and list in Hong Kong.

Since raising $4.4 billion in its US IPO at the end of June, the company has been under intense scrutiny. Beijing also announced a crackdown on technology businesses that list overseas just days after the IPO in New York. Didi shares have lost approximately 65 per cent of their value since their debut on the New York Stock Exchange.