Oil sector giants Sinopec, China Life Insurance, Aluminum Corporation of India, PetroChina and Sinopec Shanghai Petrochemical Company have said they will apply for delisting this month.
US tightens the screws on Chinese government companies
Tensions between the US and China may increase further. Actually, after coming face to face on Taiwan, now both the countries are face to face regarding the working of companies. Amidst the investigation on the accounts of 5 Chinese government companies, there is now news that these companies can delist themselves from the US stock market. In fact, the accounts of these companies are under investigation in America. Both the countries are talking on matters related to the audit, but there is no agreement in this at the moment. In fact, the US government has said that companies listed in the US will have to share all their records with the government. If no solution is found, there is a possibility that 5 government companies should get themselves delisted from NYSE.
Which companies intend to delisting
Oil sector giants Sinopec, China Life Insurance, Aluminum Corporation of India, PetroChina and Sinopec Shanghai Petrochemical Company have said that they will apply for delisting of American depository shares this month, according to Reuters news. Companies will be listed in Hong Kong and China markets. The US regulator is investigating the accounts of these companies. In the month of May itself, the US Securities and Exchange Commission was accused of non-compliance with US audit rules. However, the companies have not mentioned this in the announcement of delisting. China does not give audit documents of its companies to foreign entities for examination, saying that it is national security. However, the US regulator has asked for all the documents from Chinese companies. The companies from which the documents have been sought include Alibaba Group and Baidu Inc, apart from 5 government companies.
China and America face to face on Taiwan
Tensions have been brewing between China and America for a long time. Tension in both the countries has reached its stage since the recent visit of US House Speaker Nancy Pelosi to Taiwan. During this, China exercised fiercely for about 4 days in Taiwan. At the same time, America has also deployed its ships in the area. In the midst of this tension, Chinese government companies have chosen to delist from the US market instead of submitting documents for audit. In Europe also, action has been taken against the companies of China’s telecom sector. At the same time, action has been taken on Chinese mobile companies in India too.