China Mobile shares surge in Shanghai debut following US delisting

• The shares began trading at 63 yuan, 9.4 percent higher than the offer price

• The mobile operator finished marginally above the offer price of 57.58 yuan

China Mobile Ltd. made its debut in Shanghai on Wednesday, generating nearly $9 billion in a bumper offering.

The shares began trading at 63 yuan, 9.4 percent higher than the offer price of 57.58 yuan. 

After rising earlier in the day, shares of the mobile operator finished marginally above their offering price of 57.58 yuan ($9.06).

Read more: China introduces new rule for some firms to undergo cybersecurity review before overseas listings

The Hong Kong-listed carrier's shares finished 3.33 percent higher. In a filing on Tuesday, the business stated that it will proceed with a plan to repurchase up to 2.05 billion shares for roughly $13 billion.

Eight months after being kicked off the New York Stock Exchange, China Mobile raised the equivalent of $8.8 billion in its domestic share offering last month. 

Read more: EV battery-maker LG Energy Solution plans bumper IPO in S. Korea to raise up to $10.8 billion

The world's largest mobile network operator by total subscribers stated that the profits of the selling will be utilized to create initiatives such as premium 5G networks, cloud infrastructure, and intelligent ecosystems.

Meanwhile, Chinese authorities have sought to make it easier for local investors to invest in more of China's corporate champions and fast-growing technological firms, WSJ stated. 

Read more: SEC finalizes rule to delist Chinese firms for not complying audit disclosure requirements

US blacklists Chinese entities

Last month Washington imposed trade restrictions on 34 Chinese entities and research institutes, citing human rights violations and national security reasons. 

The move followed Washington adding Chinese AI and facial recognition firm, SenseTime, along with 25 other entities, into the restriction list, citing human rights violations. 

Read more: China's tech crackdown plunges DiDi Global's share along with other U.S. listed Chinese firms

The Biden administration also slapped an investment restriction on SenseTime, saying the business of developing face recognition technology that is being used in human rights violations against Uyghurs and other Muslim minorities in Xinjiang province, causing the company to postpone its $767 million Hong Kong IPO.

Read more: SEC warns investors of risks of buying stocks of Chinese companies listed in U

(1 USD= 6.35 Chinese Yuan)

Picture Credits: Bloomberg