United States: As relations between the two countries continue to deteriorate, three of China's largest state-owned companies are attempting to delist from the US amid an unresolved auditing dispute that has resulted in dozens of major companies being pulled from US exchanges. Land sugar companies may be expelled.
According to documents submitted on Friday to the Hong Kong Stock Exchange, where their shares are also listed, China Life Insurance, PetroChina and China Petroleum and Chemical Corporation (Sinopec) said they are seeking a "voluntary delisting" of their US depository shares. will apply. (advertisement).
According to a CSRC (China Securities Regulatory Commission) spokesperson, “it was normal for companies to be listed or delisted from any market.”
“These businesses are fully compliant with US regulations. However, low turnover in the US is a factor in their exclusion. Additionally, because they are listed in other markets, there is no impact on their ability to raise funds. In other offshore markets, according to a CSRC spokesperson.
He said CSRC respects each company's decision to list abroad and will continue to cooperate with foreign regulators to protect the interests of shareholders.
The combined market value of the three companies in Hong Kong is HK$256.92 billion (US$32.73 billion). They also make up the coveted Hang Seng Index, which gives them a combined weighting of 2.18 percent.
His exit from the NYSE coincides with growing hostility between the US and China. In response to the visit of US House of Representatives Speaker Nancy Pelosi to Taiwan, China's foreign ministry last week issued a list of eight sanctions, including the suspension of talks on climate change issues, the repatriation of illegal immigrants, criminal justice aid, and border restrictions. cross crime.
The Holding Foreign Companies Accountable Act (HFCAA), which allows companies to expel early next year if they do not comply with US auditing oversight after three consecutive years, is gradually rolled out by the US Securities and Exchange Commission (SEC). added by. ), market regulator.
As the clock counts towards the evictions, which could take effect as early as 2023, US and Chinese regulators have been trying to find a way to break the impasse for ten years. Hong Kong and the Chinese mainland were listed as two jurisdictions deemed "inaccessible" by the US Public Companies Accounting Oversight Board (PCAOB). According to China's securities regulator, PCAOB has been presented with several plans to settle the dispute.
All three companies cited low trading volume, high costs and regulatory issues, rather than an auditing dispute, as reasons for their decision to delist from the NYSE.
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