Photographer: Frederic J. Brown / AFP / Getty Images
Photographer: Frederic J. Brown / AFP / Getty Images
Chinese oil majors are possibly the next place to delist in the US, after the New York Stock Exchange said last week that it would remove the three largest telecommunications companies from Asia.
China’s largest foreign oil producer CNOOC Ltd. can run the greatest risk, as it is on the According to Bloomberg Intelligence analyst Henik Fung, Pentagon’s list of companies they say is owned or controlled by 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 could be delisted in the US, and the oil majors could be the next wave,” said Steven Leung, CEO of UOB Kay Hian in Hong Kong. At the same time, the impact of the removal of telecommunications companies is likely to be minimal, as they were traded in the US and not many funds were raised, he said.
The NYSE has said it will withdraw telecommunications operators to comply with 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.
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The Chinese Ministry of Commerce responded on Saturday, saying the country would take the necessary steps to protect the rights of Chinese companies, and hoped the two countries could work together to create a fair and predictable environment for businesses and investors. .
The China Securities Regulatory Commission said on Sunday that the impact on telecommunications companies would be limited due to their small amount of US equities, and that they were well positioned to deal with the effects of the delisting.
“The recent move by some political forces in the US to continuously and without land oppressing foreign companies listed on US markets, even at the expense of undermining its own position in global capital markets, has shown that US rules and institutions can become arbitrary, reckless and unpredictable, ”the CSRC said in a statement on its website.
U.S. President Donald Trump signed an order in November banning U.S. investments in Chinese-owned or controlled military enterprises from putting pressure on Beijing over 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 “maliciously slandering” its military-civilian integration policies and promising to protect the country’s companies. Chinese officials also threatened to respond to previous Trump administration actions with their own blacklist of U.S. companies.
– With help from Max Zimmerman and Gregor Stuart Hunter
(Updates with CSRC Statement in Sixth-Seventh Paragraphs)