China’s two state-run oil giants _ PetroChina and Sinopec are saying goodbye to the New York Stock Exchange (NYSE) due to a deepening rift and tension between the United States and China.
The decision will cause a serious blow to American stock market investors at a time when oil-related shares are demonstrating attractive profits and return.
The Sinopec and PetroChina said they are delisting from the New York Stock Exchange, along with two other state-held firms.
The announcement for the delisting of the shares or the American Depositary Shares (ADSs) from the NYSE comes amid protracted talks between China and U.S. regulators about audit rules, as well as heightened U.S.-China tensions after the visit of U.S. House Speaker Nancy Pelosi to Taiwan last week.
Apart from Sinopec and PetroChina, the other firms that had notified the NYSE of their intentions to delist were China Life Insurance and Aluminium Corporation of China (Chalco).
PetroChina said in its release that it had notified the NYSE today of its decision and would file with the SEC on or about August 29 a form to delist its ADSs from the NYSE. Among the many business reasons for seeking delisting of its ADSs, PetroChina cited “the considerable administrative burden for performing the disclosure obligations as necessary for maintaining the listing of the ADSs on the NYSE as a result of the differences in the regulatory rules of multiple listing venues.”
PetroChina will keep its listings on the Hong Kong and Shanghai stock exchanges, the company said, as did the other three Chinese firms seeking delisting from New York.
