On February 26, local Time, the New York Stock Exchange decided to officially launch the formal delisting process of China National Offshore Oil Corporation (NYSE: CNOOC) American Depositary Receipts (NYSE: CEO).
The NYSE said it will suspend trading in CEO at 4 a.m. on March 9. The exchange did not announce when it plans to complete the delisting process for CNOOC.
U.S. President Donald Trump signed an executive order last November banning Americans from investing in “Chinese companies with a military background. The investment ban on CNOOC will take effect March 9, 60 days after the company was placed on the investment “blacklist.
As of the close of the U.S. stock market on Feb. 26, CNOOC closed at $118.74, with a total market value of $53 billion (about 344.5 billion yuan).
CNOOC’s response.
Regrets NYSE’s decision to delist
On February 28, CNOOC (00883) announced in the evening that the NYSE decided to initiate the delisting process for the company’s ADSs on the 26th. The Company’s ordinary shares held in the form of ADSs represent approximately 0.5% of the Company’s total issued share capital and the decision and action may affect the trading price and volume of the Company’s securities.
CNOOC regrets the above decision and action of the NYSE and will continue to closely follow the relevant developments in this matter and will make further announcements in the future as necessary and appropriate in accordance with the Rules Governing the Listing of Securities on the Stock Exchange and applicable laws.
China’s three largest operators have been delisted
At 4:00 p.m. on January 11, 2021, China Mobile, China Unicom and China Telecom, three Chinese carriers, officially ceased trading on the NYSE and completed the delisting process.
On January 1 this year, the NYSE had announced that it would delist the ADRs of the three operators from the NYSE, and later on January 5, 2021, it said that after further consultation with relevant regulators, it would not move forward with the delisting matters related to China Telecom, China Mobile and China Unicom (Hong Kong), and the relevant shares of the three companies would continue to be listed and traded on the NYSE.
According to a Jan. 6 report by Bloomberg, the NYSE is reconsidering resuming its delisting program for Chinese companies after U.S. Treasury Secretary Steve Mnuchin called the president of the NYSE to criticize the move following the NYSE’s announcement that it was rescinding the delisting decision.
31 Chinese companies on the “blacklist”
On Nov. 12 of last year, the Trump Administration announced an executive order prohibiting U.S. investors from investing in companies owned or controlled by the Chinese Communist Party‘s military.
The rule could affect 31 Chinese companies, including China Telecom, China Mobile, CNOOC, SMIC, Hikvision and others.
The executive order will take effect on Jan. 11 next year. The order prohibits U.S. investors from making any transactions in the securities of the above-mentioned Chinese companies. It also prohibits U.S. persons from trading in the securities of these companies within 60 days of their designation as “Chinese military enterprises.
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