Five major Chinese companies “voluntarily” withdrew from the New York Stock Exchange

Five major Chinese companies, including two major oil companies, announced on Friday that they would stop listing them on the New York Stock Exchange, while the Asian giant’s companies are under scrutiny by the US regulator.

In separate statements, companies Sinopec and PetroChina oil, Heavyweight Insurance China Life Insurance, aluminum giant ChalcoAs well as a subsidiary of Sinopec From their headquarters in Shanghai, they confirmed that they are embarking on a “voluntary withdrawal” from the New York Stock Exchange.

The withdrawal comes in the context of escalating tension between Beijing and Washington due to the visit of the Speaker of the US House of Representatives. Nancy Pelosi last week to Taiwan, An island that China claims to be part of its territory.

Beijing responded angrily to the visit It conducted military maneuvers of unprecedented breadth around the autonomous island. Similarly, the Chinese executive has suspended cooperation with Washington in areas such as climate change or the fight against drug trafficking.

The five companies in particular were on a list of companies published by the North American regulator, the Securities and Exchange Commission, threatening to be removed from Wall Street. In the event of non-compliance with the new audit requirements, It has been in effect since the end of last year.

The five companies announced in separate statements that they expect to end their Wall Street listing in early September. Each argued their decision pointing The cost of maintaining the listing in the United States, As well as the weight of compliance with new audit obligations.

In 2020, the US Congress passed a law specifically targeting Chinese companies, according to which the Listed Companies Accounting Oversight Board (PCAOB, a non-profit organization created by Congress) must have the ability to examine audits of foreign companies listed in the United States. .

Mainland China and Hong Kong companies are specifically known for Not submitting your financial reports to licensed auditors in the United States.

In the list of more than 250 companies at risk of delisting in the United States is the Chinese e-commerce giant Alibaba.

The Chinese stock regulator, in turn, commented that the decision to withdraw from Wall Street was made by the five companies based on their “business standards”.

The Chinese regulator added in a statement that the withdrawal “will not affect the companies’ continued use of domestic and foreign capital markets to finance and develop” their activities.

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