Published 19:58 IST, March 3rd 2021
New York Stock Exchange set to delist Chinese oil company CNOOC on March 9
The New York Stock Exchange is set to delist CNOOC Ltd, which a Chinese oil major, in a bid to comply with an executive order by former US President Trump.
The New York Stock Exchange (NYSE) is set to delist CNOOC Ltd, which a Chinese oil major, in a bid to comply with an executive order by former US President Donald Trump targeting companies that the previous administration said had links to the Chinese military. According to the Wall Street Journal, trading in American depository shared of CNOOC will be suspended at 4am ET on March 9. It is worth noting that CNOOC is the fourth Chinese company to be slapped with such a punishment.
The NYSE had said that it would end trading shares in China Mobile, China Telecom and China Unicom to comply with Trump’s order. The Big Board’s regulatory now has determined that CNOOC was “no longer suitable” for listing in light of the executive order, which Trump signed in November 2020. It is worth mentioning that the order has remained in effect under current US President Joe Biden.
CNOOC may appeal delisting decision
According to reports, now, the company will continue to have shares listed on the Hong Kong stock exchanges 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. CNOOC was not on the initial list of Chinese companies covered by Trump’s order when he signed it, but it was later added, which is why the NYSE did not take action to delist the Chinese company till now.
The NYSE has said that CNOOC has the right to appeal the delisting decision. The exchange will include any appeal it receives in its application to the US Securities and Exchange Commission, which will be submitted on completion of all procedures. The WSJ had 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.
(With inputs from ANI)
Updated 19:58 IST, March 3rd 2021