New York Stock Exchange to delist major Chinese oil company on March 9
Mar 03, 2021
New York [US], March 3 : The New York Stock Exchange (NYSE) will move to delist CNOOC Ltd., the Chinese oil major, to comply with an executive order by former President Donald Trump targeting companies that the previous administration said had links to the Chinese military.
Trading in American depository shares of CNOOC will be suspended at 4 am ET on March 9, the NYSE said in a statement on February 26, reported the Wall Street Journal (WSJ).
It's the fourth Chinese company to be slapped with such a punishment. The exchange said in January that it would end trading of shares in China Mobile, China Telecom and China Unicom to comply with Trump's order, CNN reported.
CNOOC's Hong Kong-listed shares dropped 1.1 per cent on Monday.
According to the WSJ, the Big Board's regulatory arm determined that CNOOC was 'no longer suitable for listing' in light of the executive order, which Trump signed in November 2020. The order has remained in effect under current US President Joe Biden's administration.
The company will continue to have shares listed on the Hong Kong stock exchange even after being delisted by NYSE. However, US investors who currently hold CNOOC's NYSE-listed shares may have difficulty converting them into overseas shares and many may choose to sell in the coming days. The NYSE-listed shares fell 2.8 per cent on Friday to USD 118.74.
CNOOC was not on the initial list of Chinese companies covered by Trump's order when he signed it in November, but was added later, which is why the NYSE did not take action to delist the Chinese company until now.
The WSJ had earlier reported that the Biden administration plans to allow a Trump-era rule aimed at combating Chinese technology threats to take effect next month, over objections from US businesses.
The goal of Trump's order was to stop US investors' money from aiding Beijing's efforts to modernise its military and security services. This was a series of tough policies against China initiated by Trump before he left office earlier this year.
