Five State-Run Chinese Giants to Delist From US Stock Exchanges

Five of Cathay's largest state-owned companies, with market values ​​in the hundreds of billions of dollars, volition be delisted from the New York Stock Exchange in the coming weeks, the companies said in a spate of filings on Friday.

Iii of the globe's largest energy companies, PetroChina, Sinopec and Shanghai Petrochemical, said in separate statements that they would seek a voluntary delisting of their Usa depository shares. Two other state giants, insurer China Life and aluminum producer Chalco, also said they would no longer offer their shares in the United States, citing the administrative burden and costs associated with maintaining the shares.

Company share prices fell mostly around three percent in early trading in New York on Friday. Together, the companies have a combined market valuation of more than $300 billion.

The announcements came amidst rising tensions between Beijing and Washington and stricter scrutiny of Chinese companies listed in the United states after legislation introducing stricter oversight of these companies was passed by the House of Representatives in 2020.

US lawmakers accept long complained that Chinese companies do not play by the same rules as other companies on US stock exchanges. Despite years of debate, Beijing and Washington accept failed to reach an agreement that would requite US regulators total access to the audit records of Us-listed Chinese companies.

A listing on Wall Street, with its large investor base and liquid market, was once considered a coveted position for China's largest companies and an important step for those seeking global expansion.

Merely tensions between Prc and the United states of america have spilled over into almost every aspect of the two countries' relationship, from defense to climate to finance. A controversial trip last week past House Speaker Nancy Pelosi to Taiwan, which Communist china claims as its ain, further fueled the relationship. Hours later her visit, Beijing halted talks on military coordination, climate change and other problems.

China's market regulator said the moves would not "endanger" the five firms' fundraising activities, adding that they accept multiple markets to choose from. The companies will maintain listings in Hong Kong and mainland China.

"These companies take strictly adhered to the rules and regulatory requirements of the US capital market since their listing in the US, and fabricated the decision to delist based on their own business organization considerations," the Communist china Securities Regulatory Commission said in a statement on Fri.

All five companies were included in a listing of Chinese companies that failed to run across United states regulators' auditing standards ready out in the Foreign Company Accountability Human action passed in 2020.

Alibaba, the New York-listed Chinese e-commerce behemothic, is another company recently added to the list of more than 270 companies. When news of his consecration bankrupt earlier this calendar month, his US-listed shares fell 11 percent. The company said last month that it would soon seek an initial listing in Hong Kong, a motion that would allow more mainland Cathay investors to invest in the company.

Didi Chuxing, Communist china's answer to Uber, was amid the commencement Chinese companies to denote plans belatedly last year to delist from the New York Stock Exchange, ending a multi-year, trillion-dollar love affair between Cathay and Wall Street.

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Source: https://localtoday.news/nj/five-state-run-chinese-giants-are-being-delisted-from-us-stock-exchanges-21835.html

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