Benzinga | Mar 9, 2021 09:18AM EST

China Telecom Contemplates Secondary Shanghai Listing Post NYSE Debacle: Bloomberg

* China Telecom Corp Ltd (OTC: CHJHF) is contemplating a new listing in Shanghai to seek financing months after its NYSE delisting under an executive order from former U.S. President Donald Trump, Bloomberg reports.

* The state-owned wireless carrier plans to issue 12 billion shares on the mainland China bourse. No disclosure was made regarding share pricing.

* The second listing will enable China Telecom to tap diversified financing channels in domestic and overseas capital markets.

* The domestic hinge is possibly aimed at counteracting the impact of the U.S. delisting along with two other major Chinese telecommunications firms in January, a decision that the firms are appealing.

* The U.S. sought to cut economic links with China, including denying Chinese firms access to American capital, as part of the trade war under the Trump Presidency.

* China Telecom will utilize the offering proceeds to construct a 5G industrial Internet project and boost its cloud network. The wireless operator reported a net income of $3.2 billion (?20.9 billion) for 2020, missing analyst estimates. Operating revenue rose 4.7% to a better-than-expected ?393.6 billion.

* The Shanghai listing plan is subject to approval by the Chinese Securities Regulatory Commission.

* Price action: CHJHF shares closed at $0.21 on Monday.