A trader in a face mask works on the trading floor at the New York Stock Exchange as the Omicron coronavirus variant continues to spread in Manhattan, New York City, US, on Dec 20, 2021.SHANGHAI/HONG KONG - Five Chinese state-owned companies, including oil giant Sinopec and China Life Insurance, said on Friday they would delist from the New York Stock Exchange, amid economic and diplomatic tensions with the United States.
Beijing and Washington are in talks to resolve a long-running audit dispute which could potentially result in Chinese companies being banned from US exchanges if they do not comply with US rules. "These companies have strictly complied with the rules and regulatory requirements of the US capital market since their listing in the US and made the delisting choice for their own business considerations," the China Securities Regulatory Commission said in a statement.
"China is sending a message that its patience is wearing thin in the audit talks," said Kai Zhan, senior counsel at Chinese law firm Yuanda, who specialises in US capital markets. Global fund managers holding US-listed Chinese stocks are steadily shifting towards their Hong Kong-traded peers, even as they remain hopeful the audit dispute will eventually be resolved, Reuters reported this week.