Five US-listed Chinese companies said Friday they plan to delist their shares by filing a “voluntary withdrawal” from the New York Stock Exchange (NYSE), as US and Chinese regulators remain at odds over audit requirements.
In separate filings to the Hong Kong Stock Exchange, oil giant Sinopec and China Life Insurance, Aluminium Corporation of China (Chalco), PetroChina and Sinopec Shanghai Petrochemical Co, which have a market capitalization of more than $300 billion, said they plan to delist from US stock exchanges.
PetroChina cited the “significant administrative burden to perform disclosure obligations” needed to maintain its US listing, while many companies cited the limited trading volume of their ADS.
PetroChina said that as of August 9, the outstanding ADSs represented about 3.93% of its total Hong Kong-listed shares and 0.45% of the company’s total share capital.
All five companies said they plan to file with the US Securities and Exchange Commission for delisting within this month. They said the delisting of their ADS from the New York Stock Exchange is expected to take effect 10 days after that.
More than 250 Chinese companies face mass delistings from the United States if the two countries cannot reach a deal for US regulators to examine Chinese companies’ audit papers.