Four Chinese state-owned companies delisted from NYSE

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SHANGHAI/HONG KONG, Aug 12 (Reuters) – Several Chinese state-owned companies, including China Life Insurance (601628.SS) and oil giant Sinopec (600028.SS), announced plans on Friday to withdraw from the U.S. stock exchange .

The companies, which also include Aluminum Corporation of China (Chalco) (601600.SS) and PetroChina (601857.SS), said in separate statements they would seek the delisting of their U.S. depository shares from the New York Stock Exchange. (NYSE).

The four will retain their listings in the Hong Kong and mainland China markets.

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“These companies have strictly complied with the rules and regulatory requirements of the US capital market since their listing in the United States and have made the choice to delist for their own business considerations,” said the China Securities Regulatory Commission. (CSRC) in a press release.

China and the United States are in talks to resolve a long-running audit dispute that could lead to Chinese companies being expelled from U.S. stock exchanges if they cannot comply with U.S. audit rules.

The companies’ move comes amid heightened tensions between China and the United States following the visit of US House Speaker Nancy Pelosi to Taiwan last week.

The four companies were added to the HFCAA (Holding Foreign Companies Accountable Act) list in May after being identified as not meeting the auditing standards of US regulators.

There was no direct mention of the audit disputes in the companies’ separate statements on Friday.

“China is sending the message that its patience is running out in audit talks,” said Kai Zhan, senior counsel at Chinese law firm Yuanda, which specializes in areas including U.S. capital markets and compliance. US sanctions.

Washington has long demanded full access to the books of Chinese companies listed in the United States, but Beijing bans foreign inspection of audit documents from local accounting firms, citing national security concerns.

The four companies said on Friday that their volume of shares traded in the United States was low compared to that of their other major exchanges.

A statement from PetroChina said there was a “significant administrative burden” in fulfilling the disclosure obligations necessary to maintain its ADS listing on the NYSE due to differences in the rules of multiple listing venues.

China Life and Chalco said they would file for delisting on August 22, with the delisting taking effect 10 days later. Sinopec and PetroChina said their applications would be filed on August 29.

Chinese state giants China Telecom (0728.HK), China Mobile (0941.HK) and China Unicom (0762.HK) were delisted from the United States in 2021 after a Trump-era decision to restrict investment in Chinese technology companies. That decision was left unchanged by the Biden administration amid ongoing tensions between Washington and Beijing.

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Reporting by Samuel Shen in Shanghai and Scott Murdoch in Hong Kong Editing by Hugh Lawson and David Goodman

Our standards: The Thomson Reuters Trust Principles.

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