Five giant China enterprises all together plan to delist from US. They noted many reasons. But majorly it was due to the small trading volume and burdens on reporting. These five giant enterprises are Aluminium Corporation of China, China Petroleum & Chemical Corporation, China Life Insurance, Petrochina, and Sinopec Shanghai Petrochemical. These five companies list in Shanghai and Hong Kong. Together they argued that they would voluntarily delist from American depositary shares in the New York Stock Exchange.
They made this decision because they are aware of the continuous political tensions between China and the US. The impact of this case leads to US-listed Chinese stocks. Previously, the US Securities also found out many Chinese enterprises failed to meet the US regulators audit. Thus, there are many alarms from the US Securities audits. Responding to the media, the China Securities Regulatory Commissions also delivered a statement that they are fully aware of the US delisting issues.
Thus, they attempt to deal with the situation for the sake of their commercial decisions. Basically, the five giant enterprises enter multiple stock exchanges especially with the US shares. But these were only in small portions. As a result, this decision would not affect their fund especially to excel locally and internationally.
Based on the announcements, the five companies own almost similar reasons. They argued that they have made the right decisions based on many considerations. These would include the small trading volume in ADSs relative worldwide trading volume. There are also too many administrative costs in order to maintain the listing of ADSs on the NYSE. There are actually many reasons underlying the delisting plan.
