Chinese giants Sinopec and PetroChina leave Wall Street: Beijing’s counter-financial measures against Biden

13 August 20222 years ago babelfish

Chinese financial countermeasures against the US continue after Pelosi's visit to Taiwan: Chinese oil giants Sinopec and PetroChina, controlled by the Chinese state, declared their intention to exit the New York Stock Exchange on Friday, along with two other companies state.

The announcement of the delisting of the shares or American Depositary Shares (ADS) from the NYSE comes at a time when talks between China and US regulators over the audit rules are protracted, as well as following tightening tensions between the US and China following US House Speaker Nancy Pelosi's visit to Taiwan last week.

In addition to Sinopec and PetroChina, the other companies that have notified the NYSE of their intention to exit the list are China Life Insurance and Aluminum Corporation of China (Chalco).

PetroChina said in its statement that it notified the NYSE of its decision today and plans to file with the SEC on Aug 29 about a form to delist its ADSs from the NYSE. Among the many commercial reasons why it requested the delisting of its ADSs, PetroChina cited " the considerable administrative burden of fulfilling the disclosure requirements necessary to maintain the listing of ADSs on the NYSE due to differences in regulatory rules of multiple locations. of quotation ".

PetroChina will maintain its listings on the Hong Kong and Shanghai stock exchanges, the company said, as well as the other three Chinese companies that have requested delisting from New York.

Commenting on the delisting plans, a China Securities Regulatory Commission (CSRC) official said:

" According to the announcements of these companies, since they went public on the US markets they have strictly observed US rules and regulations on the matter, and the delisting decisions have been made based on their commercial considerations ." Strange, however, that state-controlled companies do not make decisions with even political considerations.

“ These companies are listed on multiple markets and only a small portion of their stocks are traded on US markets. The delisting plan will not compromise the ability of these companies to raise funds through domestic and foreign capital markets , ”the official added.

The Chinese Securities Commission will continue to communicate and work with overseas regulators "to jointly protect the legitimate rights and interests of issuers and investors," the Commission official noted.

Let's venture the reasons for the delisting:

the complex information burden, in the face of a limited free float;
retaliation against Pelosi's actions in taiwan,
the risk of suffering sanctions or blockades in the event of worsening of relations between China and the US, if not the invasion of Taiwan.

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The article Chinese giants Sinopec and PetroChina leave Wall Street: Beijing's counter financial measures against Biden comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/i-gianti-cinesi-sinopec-e-petrochina-lasciano-wall-street-le-contro-misure-finanziarie-di-pechino-contro-biden/ on Fri, 12 Aug 2022 15:53:25 +0000.