- China Life Insurance; the oil giant Sinopec, Aluminum Corporation of China and PetroChina leave wall street.
- They say they are leaving the New York Stock Exchange because the volume of shares they trade in that country is irrelevant in relation to their presence on the stock exchanges of Hong Kong and mainland China.
- However, there is another explanation behind it: the geopolitical dispute between the United States and China. The details.
Four Chinese state-owned giants to delist wall street.
This was reported by the companies in separate statements that surprised the most important stock market in the world and that have generated more than one speculation on the world financial scene, since it occurs days after the controversial visit of Nancy PelosiSpeaker of the US House of Representatives, to Taiwan.
Among the Chinese companies that will no longer list their shares on wall street China Life Insurance and oil giant Sinopec are counted.
The other two Chinese firms are Aluminum Corporation of China (known under the acronym Chalco) and another oil company, PetroChina.
The communiqués, very similar to each other and with identical arguments, say that they are going to request the departure of their respective American Depositary Shares (ADS, securities that instrument the listing of non-US companies in wall street).
At the same time, they said they are not delisting as they will remain listed on stock exchanges in Hong Kong and mainland China.
What is behind the flight of Chinese companies from wall street
China and the US have long held negotiations related to the audits of Asian companies listed on the wall street.
The United States claims that Chinese companies flout the rules and, in doing so, compete on unequal terms with American firms.
The Chinese say that US auditing standards are extreme and differ from those imposed on local companies.
The same four companies had been included in April 2022 in the list of the Law of Responsibility of Foreign Companies after having detected that nor met the auditing standards of US regulators.
In the announcements, the firms make no mention of these regulations, He says Reuters.
As an argument, the four say that the volume of the shares they trade in the US. it is small compared to the stock markets of Mainland China and Hong Kong.
Regarding the departure date of wall streetthe insurer Chinese Life and the Chalco oil company will formally present the exclusion request on August 22 so that the exclusion will take effect from September 1.
Sinopec and PetroChina, meanwhile, are going to present the order on August 29, so it is speculated that their departure from wall street would operate on September 10, 2022.
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