Why the United States wants to delist China's three major operators

According to the Russian Satellite Network, regarding the latest decision of the New York Stock Exchange, Bian Yongzu, a visiting researcher at the Center for Strategic and Security Studies of Tsinghua University, believes that the number of American depositary receipts issued by the three Chinese operators is not large, and there are also few shareholders in the United States. But relatively speaking, delisting may have some impact on American investors.

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The three Chinese operators are very profitable and their business is developing rapidly. Coupled with the huge Chinese market, their profit growth space or imagination space is very broad. This also means that the upward trend of their stocks is very clear. "Under this circumstance, delisting from the United States may cause American investors holding the stocks of the three companies to lose certain profit opportunities," said Bian Yongzu.

Why did the United States want to delist China's three major telecom operators? Of course, there is a political purpose, which is to show an anti-China attitude. Why did the United States take such measures? I am afraid that the United States has no more cards to play against China. The United States has played political and military cards against China, but none of them worked. China is still tough on the United States and has not made any concessions. Moreover, during the Alaska meeting, China also questioned the strength of the United States, which also caused many countries to doubt the strength of the United States.

In this situation, the United States picked up this card and played it against China to show its toughness towards China. In addition, the United States does not hold many shares in China's three major telecom operators, so letting them delist will not cause too much loss to American investments.

This is only one aspect of the reason why the United States delisted China's three major operators. Of course, there is another aspect, which is that China's long-term development in telecommunications will inevitably surpass the United States as a whole. Moreover, as time goes on, if these three major operators do not leave the stock market, they will become the stars of the US stock market in the future, and may even eclipse Apple.

First of all, China's 5G level ranks first in the world. The three major operators combined with 5G technology will be an economic growth point in the future and a profit point. With the recovery of China's economy and the future upgrading of China's industries, investing in the three major operators will inevitably have good returns. As for capital, what they want is to make money, and they will invest in whoever can help them make money.

At present, the US stock market has become a little unstable in the short term due to inflation, but because the US continues to release money, the US is likely to continue to rise. If the US stock market rises because of money release, it means that the US economy has not recovered and the profits of US companies have not increased significantly. In other words, many stocks have bubbles, and where there are bubbles there is a risk of bursting. Therefore, investors who invest in the US stock market are worried that if the US stock bubble bursts one day, their investment money will be wasted.

Therefore, many investors hope to find companies with relatively stable profits. Currently, many American companies have poor profit levels, mainly because of the poor economic environment they are in. It is difficult to say whether the epidemic in the United States has been brought under control. Although the current epidemic in the United States has been brought under control based on data, media reports on May 10 said that Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on the 9th that the actual number of deaths from the new crown in the United States is "undoubtedly much higher" than the known situation.

If what Fauci said is true, then the United States has concealed something about the epidemic, which will directly make people doubt the current epidemic data in the United States and the effectiveness of the US vaccine. After all, Fauci is an authority on the epidemic in the United States, and it is very necessary for everyone to refer to what he said.

If the U.S. epidemic data is distorted, then it is questionable whether the U.S. economy has really recovered. However, even if there is no epidemic, the U.S. economy is in decline. Since the 2008 financial crisis, the U.S. has experienced three QEs, and the U.S. interest rate remains low. The U.S. is conducting $120 billion in QE every month. The U.S. is still releasing money, which means that the U.S. economy has not recovered. It's like, you have been taking medicine, how can you make people believe that your illness is cured?

Since the U.S. economy has not recovered, it means that many U.S. companies have little or no profits. Many companies went bankrupt in the United States during the outbreak of the epidemic in 2020. Until now (May 2021), there are still many companies in the United States filing for bankruptcy.

There is no profit, but the stock price is still rising, that is a bubble. The U.S. stock market is too high now, so many investors are afraid that the U.S. stock market will suddenly plummet. In fact, the U.S. stock market plummeted in 2020 due to the epidemic. Later, the United States pulled up the U.S. stock market again by flooding the market with money. Now the U.S. stock market is getting higher and higher.

The higher the U.S. stock market goes, the more worried people become. In order to eliminate worries, the Federal Reserve will keep pushing up the price. Anyway, it is telling you not to worry. Many investors see this situation and think that the Federal Reserve will back them up, so they go in and speculate, hoping to make the last bit of money. However, the closer it gets to the end, the more panicked investors become. After all, the higher the price, the greater the risk. This is why the U.S. stock market fluctuated after the inflation data came out.

At this time, they will seek stability and look for stocks of companies with stable returns. China's three major telecom operators have relatively stable long-term returns no matter how you look at it, so holding stocks of these three companies will result in more stable returns.

If these three companies were still listed on the US stock market, they would certainly attract a lot of US investors, and the result would be more money invested in them and less money invested in US companies. In fact, there are still many Chinese companies listed in the US, and Chinese companies that rely on the Chinese market and have stable returns and are listed in the US will inevitably attract a lot of US investment.

As the US economy gradually declines, Chinese companies listed in the US will inevitably become popular, thus attracting more US investment. What will those US companies think? US investors use their own funds to help Chinese companies develop, but do not invest in American companies themselves.

The three major operators are the best among these Chinese companies. They are bound to be stable due to their strong background. Therefore, the United States took this opportunity to delist the three major operators to express its anti-China attitude, and from an investment perspective, reduce China's financing in the United States, allowing its own companies to obtain more financing, while interfering with the development of China's three major operators.