Chinese chipmaker SMIC to continue trading in U.S. OTCQX till Feb. 1
SMIC's logo. /VCG

SMIC's logo. /VCG

After being removed on January 6, China's largest chipmaker Semiconductor Manufacturing International Corp. (SMIC) has been allowed to trade in OTCQX, a financial market for over-the-counter securities in the U.S., until February 1, the company announced on Sunday. 

U.S. President Donald Trump issued an executive order in November 2020, banning U.S. investment in companies allegedly having affiliation with the Chinese military. With SMIC being labeled by the U.S. administration as one such company, the order barred Americans from purchasing SMIC's securities starting February 2, 2021 and even selling them after 365 days therefrom. However, OTCQX had gone ahead and removed SMIC before time.

In the latest development, the OTCQX has "changed its position regarding the effective date of the Executive Order and are now permitting trading in the company's securities to continue until 1 February 2021," said SMIC in a statement.

SMIC's shares began to trade on the OTCQX Market after it ended its 15-year listing in the New York Stock Exchange in May 2019, citing limited trading volumes and burdensome costs.

Listed in Hong Kong, the Shanghai-headquartered company made its trading debut on Shanghai's Nasdaq-style STAR Market in July, marking China's biggest IPO in a decade.

The chip industry is in the front line of China-U.S. trade tensions. The SMIC has been under fire as Trump restricted dozens of Chinese companies citing alleged military ties, despite denials by companies and protests by Chinese officials.

Read more: China urges U.S. to stop abusing the concept of national security to oppress Chinese companies

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