Semiconductor Manufacturing International (SMIC) didn't do so well in the U.S. stock market before, so much so that it was directly delisted from the U.S. stock market.
Since SMIC submitted its IPO application on June 1 this year on the A-share Kechuan board, it took just under a month to get the approval, setting a new pace for reviewing A-share IPOs. By July 5, SMIC directly announced the issue price of 27.46 yuan / share, from the financing scale, SMIC has been deservedly A-share scale first. Semiconductor Manufacturing International, the initial number of shares issued was 1.686 billion shares, and to this day, SMIC has soared to 70 yuan/share, and its market value has exceeded the 600 billion yuan mark, which can be called the first share of the A-share Semiconductor Manufacturing Board. This shows that SMIC's delisting from the U.S. stock market is also a very wise choice.
So, how was SMIC's previous performance in the U.S. stock market? As a matter of fact, SMIC's performance in the U.S. stock market is so bad that it can be described as a mess. SMIC landed on the New York Stock Exchange (NYSE) from March 2004, and it is also listed on the Hong Kong Stock Exchange (HKSE), where it issues depositary receipts. As of 2019, SMIC's market capitalization on the Hong Kong Stock Exchange is $42.5 billion, while its market capitalization on the U.S. Stock Exchange is only a paltry $555 million, which is a very big gap. It can be seen that the shareholders of the U.S. stock market are very unfavorable to SMIC, and also very unfavorable.On May 24, 2019, the U.S. stock market of SMIC opened with a plunge of more than four percent, and in the last ten days, the average daily trading volume of SMIC was about 280,000 shares, compared with the trading volume of SMIC in Hong Kong stock, which was much larger, and in the last ten days, the average daily trading volume of SMIC reached 43.3 million shares in the last 10 days, and this comparison can be said to be one heaven and one earth.
This shows that SMIC's performance in the U.S. stock market is just too mediocre to have any flash, and U.S. stockholders are generally not optimistic about SMIC. However, just after SMIC was delisted from the U.S. stock market, it not only created a record fund-raising for the A-share Semiconductor Manufacturing Board, but also pulled up its market value in Hong Kong, which almost doubled, and by mid-July this year, SMIC's market value in A-share continued to soar, and even exceeded the 600 billion yuan mark, which is a very good performance, and it can be seen that shareholders of the A-share market are very optimistic about SMIC.
So why did SMIC delist from the US stock market back then? In fact, the main reasons why SMIC was delisted from the U.S. stock market are as follows:
One of them is because SMIC ADS trading volume is very low. As I said earlier, compared with the trading volume in Hong Kong stocks, SMIC's trading volume in the U.S. stock market is too small, and in maintaining the ADS listing on the New York Stock Exchange will bring a heavier administrative burden as well as a very high cost, so it is not difficult to understand why SMIC delisted from the U.S. stock market in terms of cost considerations.
The second reason is because SMIC's market share in China has increased significantly. According to SMIC's annual report, its sales share in China expanded to 15.9 percent, while its sales share in the U.S. shrank further to 32 percent.
It's also for these reasons that SMIC was delisted from the U.S. stock market. All in all, SMIC's previous performance in the U.S. stock market was very bad.