Why is China Telecom's stock suspended?

After China Telecom's stock went public, the spy crashed, and then even the transaction was suspended. The reason is that, if Telecom is recognized as a company controlled by China's military and forced to withdraw from the NYSE, it is precisely because of the reversal of political factors that China Telecom's share price began to plummet.

I. Performance of China Telecom

Even if China Telecom collapsed after listing, its performance was quite good. Almost a year. The released financial report for the first half of the year shows that China Telecom's revenue in the first half of the year reached 2 192 billion yuan and its net profit reached 177 billion yuan. Both income and profit are increasing. It can be said that the income quality of China Telecom is quite technical. As a traditional telecom operator, the development of industrial digitalization is in the first place. In addition, China Telecom has been listed in Hong Kong stock market and US stock market before A-share listing. It can be said that the development of China Telecom is quite good.

Second, China Telecom was suppressed and the stock market had to be suspended.

In recent two years, the pressure of American government on China's science and technology enterprises has been increasing, and China Telecom, as an operator, has also been greatly affected. In May, 20021,the three major telecom operators were even forced to withdraw from the NYSE, which was accused of being a China subsidiary controlled by the China military during the Trump administration. As a result of this situation, China Telecom's A-share price kept falling, from HK$ 4.53 to HK$ 2.80, and finally had to suspend trading.

Third, China Telecom has no confidence in its share price.

Considering the premium of A shares and Hong Kong stocks, the valuation of listed companies will be generally high. The operation mode of China Telecom is very mature, but the A shares are generally much more expensive than Hong Kong stocks. After the continuous decline of A-share market value of 654.38+000 billion, China Telecom began to have some confidence in its share price. In particular, investors are not optimistic about China Telecom, so China Telecom can only reduce its price.

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There is nothing wrong with China Telecom itself. In recent years, its operation has even achieved good results. However, the issue price is somewhat outrageous, and it is difficult for A-share retail investors to win the favor of the Hong Kong stock market. Trading was suspended before because of the political suppression of the stock market, which had little short-term impact. However, it will take some time for China Telecom's share price to rise in the future.