NEW YORK CITY - In another escalation due to rising tensions, 5 Chinese state-run global companies have announced their decision to de-list from the New York Stock Exchange.
The companies included in the list are as follow:
Due to national security concerns, China has been reluctant to open access to its books for auditing by U.S. regulators, while The United States demands it as a law for all companies being traded on the open United States markets, though the Chinese Securities Regulatory Commission (CSRC) claims it has been nothing but compliant.
The companies did not mention the disputes in auditing practices when they announced their intentions to de-list from the New York Stock Exchange. However, the decision comes amid rising U.S. and China Tensions, following a visit from the U.S. House Speaker Nancy Pelosi to Taiwan, which is a move that China sees as a violation in its 'One-China' policy.
With the release of the Holding Foreign Companies Accountable Act, which went into effect in December 2021, there are approximately 250+ foreign companies that have been listed as potentially in trading violations with United States regulatory law.
Other companies from China on the list are J.D. Com Inc, Alibaba Group Holdings, and Baidu Inc.
In response to this news, Chinese companies saw percentage drops ranging from 5.7% - 1.7%. Neither the NYSE nor the Public Company Accounting Oversight Board were ready to provide comments related to the situation.
Other companies from China that have been de-listed previously during the Trump Administration include China Telecom (0728.HK, China Mobile (0941.HK) and China Unicom (0762.HK) to restrict growth of Chinese technology companies in the United States, and has been unchanged since the Biden Administration took office.
The CSRC has made a statement which was posted through Global Times that the decisions were made in China and will maintain communication with various regulatory authorities to protect the interests and rights of investors.
According to the Wall Street Journal, the companies were de-listing due to a limited trade volume of U.S. securities as well as administrative and maintenance burdens. It also stated that the timing would be around 1 month before the companies would submit an application for de-listment, and early September would be their last days of trading in the United States.
The companies included in the list are as follow:
- Sinopec (600028.SS)
- China Life Insurance (601628.SS)
- Aluminium Corporation of China (601600.SS)
- PetroChina (601857.SS)
- Sinopec Shanghai Petrochemical Co (600688.SS)
Due to national security concerns, China has been reluctant to open access to its books for auditing by U.S. regulators, while The United States demands it as a law for all companies being traded on the open United States markets, though the Chinese Securities Regulatory Commission (CSRC) claims it has been nothing but compliant.
The companies did not mention the disputes in auditing practices when they announced their intentions to de-list from the New York Stock Exchange. However, the decision comes amid rising U.S. and China Tensions, following a visit from the U.S. House Speaker Nancy Pelosi to Taiwan, which is a move that China sees as a violation in its 'One-China' policy.
With the release of the Holding Foreign Companies Accountable Act, which went into effect in December 2021, there are approximately 250+ foreign companies that have been listed as potentially in trading violations with United States regulatory law.
Other companies from China on the list are J.D. Com Inc, Alibaba Group Holdings, and Baidu Inc.
In response to this news, Chinese companies saw percentage drops ranging from 5.7% - 1.7%. Neither the NYSE nor the Public Company Accounting Oversight Board were ready to provide comments related to the situation.
Other companies from China that have been de-listed previously during the Trump Administration include China Telecom (0728.HK, China Mobile (0941.HK) and China Unicom (0762.HK) to restrict growth of Chinese technology companies in the United States, and has been unchanged since the Biden Administration took office.
The CSRC has made a statement which was posted through Global Times that the decisions were made in China and will maintain communication with various regulatory authorities to protect the interests and rights of investors.
According to the Wall Street Journal, the companies were de-listing due to a limited trade volume of U.S. securities as well as administrative and maintenance burdens. It also stated that the timing would be around 1 month before the companies would submit an application for de-listment, and early September would be their last days of trading in the United States.