Business Hub – New York – News agencies
Five of China’s largest state-owned enterprises announced, yesterday friday, its withdrawal from the New York Stock Exchange, Amid a dispute over the financial audits of the activities of these companies.
Among these companies, Sinopec and PetroChina It is one of the largest oil groups in China and the world. And they said that they would apply for a voluntary withdrawal from the US stock market, as announced by the Chinese aluminum company “Chalco”, and China Life Insurance. And a branch of “Sinopec” based in Shanghai, its other intention is to exit the American stock exchange, while the shares of these five companies remain listed on the Chinese stock exchange. and the Hong Kong Stock Exchange.
This comes as a continuation of the two-decade-old dispute between China and the United States. on allowing US inspectors to access paperwork allowing audits of Chinese companies’ business.
Mainland China and Hong Kong companies are notorious for not submitting their financial statements to auditors approved by US authorities.
A law passed in 2020 by the US Congress requires any company listed in the United States to have its accounts approved by a company accredited by the Independent Accountability Organization.
In the event of non-compliance with the legislation, companies risk having their registration canceled from 2024. In this context, the five companies announced the decision to withdraw.
The companies justified their decision by the cost associated with maintaining the registration in the United States as well as the burden of complying with audit obligations.
The five groups are on a list of companies ordered by the US Markets Control Commission to comply with imposed accounting obligations and were essentially threatened with expulsion from the New York Stock Exchange. This list includes other Chinese companies such as Alibaba.
It is noteworthy that PetroChina was listed on the US Stock Exchange in 2000. Its market value is $135 billion. and “China Life” in 2003, Its market value is $98 billion. and “Sinopec Corp” in 2000, With a market value of $71 billion, and “Chalco” in 2001, Its market value is $10.6 billion. and “Shanghai Sinopec” in 1993, Its market value is $3.9 billion.