SMIC has been notified by OTC Markets Group, the operator of the OTCQX market, that it will be removed from the OTCQX market as of the close of trading on January 6 and that the company's securities will no longer be eligible to be quoted or traded on the OTC Link ATS, the chipmaker said on Wednesday.
The OTCQX is a financial marketplace for US over-the-counter securities, and SMIC's ADRs were traded on the OTCQX after its delisting from the NYSE in 2019.
SMIC's withdrawal from trading on the OTCQX market was affected by a previous US executive order.
SMIC announced on December 4 of last year that the company was placed on the US list and that US persons would be restricted from trading in marketable securities issued by SMIC and their related derivatives.
US persons will not be allowed to buy the company's securities after 60 days from December 4, 2020 Beijing time, and after 365 days, US persons will not be allowed to trade in the company's securities.
This follows the announcement by FTSE Russell that it will remove the shares of three companies, including SMIC, from the FTSE Global Equity Index Series and the FTSE China A-Share Index from the opening of trading on January 7.
After delisting from the US, SMIC was listed on China's Nasdaq-style sci-tech innovation board, also known as the STAR market, in July last year.