3 Celebrity state -owned enterprises apply for delisting from the NYSE

On August 12, PetroChina, Sinopec, and Shanghai Petrochemicals successively announced that in accordance with relevant provisions such as the 1934 US Securities Trading Law (revised) and other relevant provisions, they applied for voluntarily delisting their US deposit shares from the New York Stock Exchange.

The reasons for delisting the three companies in the announcement are basically the same. First, the proportion of US deposit stocks occupies a company's H shares and total shares, and the transaction volume is lower than the company's global transaction volume; Corresponding to the registered H -shares to register and abide by the regular reports and related obligations stipulated by the US Securities Trading Law, the administrative burden and costs involved are large.

In addition, PetroChina also said that the company has never used the NYSE secondary financing function, and the Stock Exchange and Shanghai Stock Exchange have strong replaceability, which can meet the company's normal operation of financing needs.

Data show that from 1992 to the present, Chinese companies have been listed on the US New York Stock Exchange and Nasdaq for 30 years. In addition to financing demand in the United States, it is more important to build overseas brands and build a global sales network.

However, since March this year, the United States has included Chinese stocks in the pre -delivery list in batches, asking Chinese listed companies to submit documents needed for the United States within 3 years. According to data from the US -China Economic and Security Review Committee, as of March this year, a total of 261 Chinese companies were listed in the United States with a total market value of about 1.3 trillion US dollars. As of the end of July, 159 stocks have been included in the pre -delisting list, including PetroChina, Sinopec and Shanghai Petrochemical.

According to the announcement, Sinopec plans to submit a form 25 form 25 to the US Stock Exchange on August 29 to deliver its deposit shares from the New York Stock Exchange. The delisting of the deposit stock is expected to take effect 10 days after the form is submitted. The final trading date of PetroChina Stock Stocks in the New York Stock Exchange is Around September 8. After this date and the date, PetroChina's depository stocks are no longer listed on the NYSE.

For a number of companies intending to delist from the United States, the China Securities Regulatory Commission stated that listing and delisting are the normal capital market. According to relevant companies' announcement information, these companies have strictly abide by the US capital market rules and regulatory requirements since the listing of the United States, and make delisting options for their own business considerations. These companies are listed in many places, and the proportion of securities listed in the United States is very small. The current delisting plan does not affect the continued use of domestic and foreign capital market financing and development.

CICC believes that the delisting of state -owned enterprises is basically in line with expectations, which symbolizes significance or greater than the substance, and has limited impact on the status and transactions on the listing of Hong Kong stocks. But subsequent audit cooperation is worthy of attention. Return to Hong Kong stocks and turn to the main listing or become the mainstream choice.

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