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China Oil Majors may face US delisting after Telcos cuts
(Bloomberg) – Chinese oil majors may be the next in line to delist in the US after the New York Stock Exchange said last week that it would remove the three largest telecommunications companies in Asia. China’s largest foreign oil producer CNOOC Ltd. according to Bloomberg Intelligence analyst Henik Fung, it is on the Pentagon’s list of companies that, according to him, are owned or controlled by the Chinese military. PetroChina Co. Ltd. and China Petroleum and Chemical Corp., also known as Sinopec, could also be threatened as the energy sector is crucial to China’s military, he said. “More Chinese companies can be listed in the US and the oil major. if the next wave can come, ”says Steven Leung, executive director of UOB Kay Hian in Hong Kong. At the same time, the impact of removing the telecommunications companies is likely to be minimal, as they were traded in the US and did not raise much funds there, he said. The NYSE said it would withdraw telecommunications operators from a U.S. executive order imposing restrictions on companies identified as affiliated with the Chinese military. China Mobile Ltd., China Telecom Corp Ltd. and China Unicom Hong Kong Ltd. will all be suspended between Jan. 7 and Jan. 11, and the process of delisting it has begun, the exchange said. In separate statements Monday, each company said it “regrets” the NYSE’s actions and said the decision could affect the prices and trading volume of the companies’ shares. All three companies said they had not received any notification from the NYSE about the delisting. Protecting interests China Unicom and China Mobile said they were investigating ways to protect the “legal rights” of the companies. China Telecom said it was considering “matching options” to “protect the legitimate interests of the company.” Read more: TikTok, Hong Kong and more US-China flashpoints: The Ministry of Commerce of QuickTakeChina responded on Saturday, saying that the country would take the necessary steps to protect the rights of Chinese companies and hoped that the two countries can work together to create a fair and predictable environment for businesses and investors. The China Securities Regulatory Commission said Sunday that the impact on telecommunications, given their small volume in U.S.-traded stocks. companies will be limited and that they are well positioned to handle the consequences of the delisting. China says NYSE delisting of the Telco giants has a limited impact. “The recent move by some US political forces to continually and unscrupulously suppress foreign companies listed on US markets, even at the expense of undermining its own position in global capital markets, has proven US rules and institutions can become arbitrary, reckless and unpredictable, “the CSRC said in a statement on its website. In November, US President Donald Trump signed an order preventing US investments in Chinese enterprises owned or controlled by the military from putting Beijing under pressure. about what it considers abusive business practices. The order banned U.S. investors from buying and selling shares in a list of Chinese companies designated by the Pentagon as military ties. The Chinese Foreign Ministry later accused the US of “brutally slandering” its military-civilian integration policy and promising to protect the country’s companies. . Chinese officials have also threatened to respond to previous Trump government actions with their own blacklist of U.S. companies. (Updates with response from China Mobile and China Unicom in the fifth paragraph) Visit us at bloomberg.com for more articles like this. Sign up now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP