The Strategist

Five Chinese state-owned companies are leaving the NYSE



08/15/2022 - 11:17



Five state-owned Chinese corporations, including the world's largest oil company Sinopec, have declared that they will remove their American Depositary Shares from the New York Stock Exchange.



Michael Zanussi
Michael Zanussi
According to Reuters, the Chinese firms informed the NYSE of their intentions and stated in their individual statements that they would request for a "voluntary delisting" this month.

The group of five consists of Sinopec, China Life Insurance, Sinopec Shanghai Petrochemical, PetroChina, and Aluminum Corporation of China (Chalco), a producer of aluminum. "Since their listing in the U.S., these businesses have strictly obeyed the rules and regulatory requirements of the U.S. stock market and opted for delisting for their own business reasons," the China Securities Regulatory Authority highlighted in a statement.

Their shares will stay listed on the mainland Chinese and Hong Kong stock markets after they leave the NYSE. The companies noted the relatively low trading volume of their securities on the NYSE and the extremely high administrative and financial costs of maintaining their listing in their announcement of the impending delisting.

As required under a law enacted in the U.S. in December 2020, these companies were added by U.S. regulators to a list of foreign businesses that do not adhere to external audit rules.

source: reuters.com

 




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