Five of China’s largest state-owned companies, worth hundreds of billions of dollars in market value, will be delisted from the New York Stock Exchange in the coming weeks, the companies said in a series of filings on Friday.
3 of the world’s largest energy companies, petro china, Sinopec When Shanghai Petrochemicalsaid in a separate statement that it will apply for a voluntary delisting of its American Depositary Shares.Others he owns two state-owned giants, an insurance company china life and aluminum producers Chalcoalso said it would cease offering its shares in the United States, citing the administrative burden and costs associated with maintaining the shares.
Shares of both companies were down before Friday’s New York trading, mostly down about 3%. The combined market valuation of both companies exceeds his $300 billion.
The announcement comes amid heightened tensions between Beijing and Washington and following a law passed by the House of Representatives in 2020 to introduce tighter scrutiny of those companies. Increased scrutiny of companies.
U.S. lawmakers have long complained that Chinese companies do not follow the same rules as others on U.S. stock exchanges. Despite years of debate, Beijing and Washington are unable to reach an agreement to allow US regulators access to fully inspect audit documents of US-listed Chinese companies. was.
With a deep investor base and a highly liquid market, listing on Wall Street was once a coveted position for large Chinese companies and seen as an important step for companies looking to go global.
But tensions between China and the United States spill over into nearly every aspect of bilateral relations, from defense to climate to finance. House Speaker Nancy Pelosi’s controversial visit to Taiwan last week, which China claims to be its own, has further soured relations. Hours after her visit, Beijing suspended talks on military coordination, climate change and other issues.
China’s market regulator said the move would not “jeopardize” the fundraising activities of the five companies, adding that there were multiple markets to choose from. Both companies will maintain their listings in Hong Kong and mainland China.
“These companies have strictly adhered to the rules and regulatory requirements of the U.S. capital market since their listing in the United States, and chose to delist for their own business reasons,” the China Securities Regulatory Commission said. said. statement On Friday.
All five have been added to the list of Chinese companies that have not met U.S. regulatory audit standards outlined in the Holding Foreign Companies Accountable Act passed in 2020.
Alibaba, the New York-listed Chinese e-commerce giant, is another company recently added to the list of more than 270 companies. Stocks fell 11%. The company said last month that it would soon aim for a preliminary listing in Hong Kong to allow more investors from mainland China to invest in the company.
Didi Chuxing, the Chinese respondent to Uber, was one of the first Chinese companies to announce plans to delist from the New York Stock Exchange late last year, putting it between China and Wall Street in years. A trillion-dollar relationship has come to an end.