DANNY ABARParticipantJanuary 2, 2021 at 10:46 AMPost count: 95
Charles Schwab Global (800/992-4685, available 24/6, excluding Saturdays, available again Sunday, 5:30 EST) may be able to assist its clientele, either now, or in the future, regarding the sale of China Mobile securities.
I currently hold 110 shares of CHL stock and 15 contracts of CHL 06/18/2021 $30.00 Calls, and will be looking for a strategy that will allow me to minimize my current loss positions.
I will update this post after I speak with Charles Schwab Global representatives.LingParticipantJanuary 2, 2021 at 1:36 PMPost count: 230
Schwab replied to me
You can’t open a global account because you are you reside in the U.S. That is only for clients who live outside of the U.S.MICHAEL HIRSCHParticipantJanuary 2, 2021 at 7:31 PMPost count: 48
Sean, Because I see that currently there are three threads are active on CHL I will post this reply on all three for consideration by our LI family –
My question to Schwab – So my question is can CHL CHINA MOBILE LIMITED SPONSORED ADR be held or traded by Schwab on the Hong Kong Exchange? I ask because of the Presidential Executive order due to go into effect next week. So am I good with Schwab?
Their answer – Clients are able to trade on the Hong Kong exchange over the phone with a foreign stock broker. My foreign stock trading specialists can be reached by phone at 800-992-4685. Their hours are Sunday at 5:30 p.m. Eastern to Saturday at 1 a.m. Eastern.
I will be attempting a transfer from Webull to Schwab only after they confirm that it would execute before close of business on Monday and the Foreign Stock Trading Specialists confirm they can also be traded on the Hong Kong Exchange.
Will update after the 5:30 PM call.
Peace, Pastor MichaElSean HymanKeymasterJanuary 2, 2021 at 7:34 PMPost count: 5673
Ling, that’s what I suspected. But thanks for confirming that.
Yeah, I don’t know a thing about trading through Hong Kong, but if they can transfer it and allow you to sell it when you wanted thruogh a broker there, that would be great. Let us know if you do that and what all was involved in doing so.TSavageParticipantJanuary 3, 2021 at 12:54 PMPost count: 22
I spoke to Schwab. They allegedly sent an email in November with this information:
Following the executive order and recently updated guidance from our third-party trading partners, if you wish to liquidate any of the associated securities you should do so before the market closes on Monday, January 4, 2021. If you do not, Schwab may be unable to accept any liquidation orders for any security, or any derivative of, that has been identified by the U.S. government as having investment exposure to CCMCs after January 4, 2021. Barring any future guidance from the U.S. government, you may continue to hold these securities beyond this date, but you may not be able to liquidate them at Schwab.
I then asked could the government (i.e. Joe Biden) reverse the executive order and then that would allow normal trading? Or would my CHL securities go to zero on Tuesday and a new executive order would be for future purchases/sales? Schwab replied: No they will not go to zero. As long as there is a market they will have value, however legislation could prevent you from selling the position. You may be able to transfer the securities to another broker-dealer. Please contact Schwab Global Investing Services at the number below for more information. (These transactions may incur fees or commissions, depending on the asset type. Please be aware that other U.S. financial institutions may be unable to accept incoming transfers of these securities, which could limit the ability to transfer the securities out of Schwab.) They can be reached directly at 800-992-4685 or +1 415-667-8400 and are available Sunday: 5:30pm ET through Friday 5:30pm ET. Or by sending a message through the Secure Message Center under Service > Contact Us > Upload Document. https://client.schwab.com/secure/cc/service/message_center
So Sean, do you have advice on holding or selling CHL? Thank you.Sean HymanKeymasterJanuary 3, 2021 at 2:06 PMPost count: 5673
TSavage, I see no need in having your money tied up in something you can’t sell, on the gamble that Biden will reverse things.
As mentioned on the forum, unless US clients are transferring the position to Hong Kong, they’d need to sell on Monday. THere will be an alert then.TSavageParticipantJanuary 3, 2021 at 2:30 PMPost count: 22
Thank you Sean. Your leadership and advice is much appreciated.MICHAEL HIRSCHParticipantJanuary 3, 2021 at 5:55 PMPost count: 48
I am posting on the three leading CHL feeds.
After speaking with Schwab Global Specialist at 6:50 PM, they directed me to the official NYSE announcement posted on 12/31/2020 – https://ir.theice.com/press/news-details/2020/NYSE-to-Commence-Delisting-Proceedings-in-Securities-of-Three-Issuers-to-Comply-with-Executive-Order-13959/default.aspx
I will sell my position at 4 AM on Webull with a limit order as this is in pre-market and if it does not execute then at market at open.
I have thoroughly enjoyed following the threads on the three CHL feeds.
Peace, Pastor MichaElMICHAEL HIRSCHParticipantJanuary 4, 2021 at 3:07 AMPost count: 48
Sold at 4 AM. Did not diminish my gains from 2020! Hope it goes well for all of our LI family! Peace, Pastor MichaElChristiaan VlasblomParticipantJanuary 4, 2021 at 5:19 AMPost count: 260
(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!
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