(Posted on all 3 CHL threats to make sure no one misses it)
Over the weekend I was a bit surprised about all the panick selling at a loss of CHL. In my case it would be of 25% if I sell everything today. We worked for years on this stock with precisely averaging down, some even recently. Why give that all up so soon because of one executive order being still in implementation phase with no one (and no broker) knowing the exact implications.
I was surprised because there are still other scenarios possible and being worked on:
– Court case being prepared moving the date further into the future
– CHL stocks move to Honk Kong stock exchange
– Trading continued via OTC trading (Over The Counter: https://www.investopedia.com/terms/o/otc.asp )
I got in touch with my broker Interactive Brokers (IBKR) today, see below their chat answers on my questions.
So I will not do panic selling. I will wait on possible move to Hong Kong stock exchange and in the mean time use the OTC trading process. And wait on a better CHL stock price as the current premarket price of 27.65$ (-3.12% since last close) is terrible.
You could also check with your broker about the OTC and/or Hong Kong options and if not possible open and Interactive Brokers account and move only your Chinese stocks there. I like your preferred brokers a lot (Ameritrade and Schwab, ThinkorSwim platform) but their major problem is that they are not international but too US centric. As Dutch citizen I could not get an account with them. And they seem to force their clients into panic selling with a simple stock delisting. That happened with Chinese stocks before so they should solve that for you.
If they can’t solve it, move to Interactive Brokers instead of missing a double loss of 50% (25% loss plus 25% gain missed).
Just my contrarian opinion while trying to help my US colleagues to avoid losses.
ME: How does IBKR handle the China Mobile delisting ?
IBKR: Hello, Please allow me a moment to read the question you submitted to iBot and I’ll respond to you shortly. It will be listed as OTC and would continue trading
ME: Hello, Christiaan here. Will it be moved to the HongKong stock exchange? As OTC trading has same executive order restrictions in US as NYSE. Or does OTC trading work because I am not US citizen but Dutch citizen?
IBKR: Earlier when a few China based firms were delisted they were trade on the OTC exchanges. As far as moving to Hong kong is considered — we can only wait for more clarity. OTC trading will work, you need to apply for US penny stock permissions–If in case its listed on OTC.
ME: Will OTC trading also work for US citizens?
ME: A lot of other brokers force their clients to sell China Mobile today, eg Schwab, Ameritrade, could those clients move their CHL stocks into a IBKR account ?
IBKR: I am not sure whether other brokers are forcing their client to close their positions in China mobile. But if its traded on OTC, it will be available for IBKR clients to trade.
ME: and also to move CHL stocks from another broker into an IBKR account?
ME: ok, thanks a lot for all your clarifications, have a great day!
IBKR: You are welcome!