NYSE moves to delist Chinese oil company


The New York Stock Exchange said it would delist Cnooc Limited.

CEO -2.84%

, the Chinese oil company, to comply with an executive order signed by former President Donald Trump that targets companies that the previous administration said had ties to the Chinese military.

Trading in Cnooc’s US depositary shares will be suspended at 4 am ET on March 9, the NYSE said in a statement.

The Big Board’s regulatory arm determined that Cnooc was “no longer eligible for listing” in light of the executive order, which Trump signed in November. The order has remained in effect under Biden’s administration.

Cnooc, one of the major Chinese state-controlled oil and gas producers, did not immediately respond to a request for comment.

The company will continue to trade shares on the Hong Kong Stock Exchange even after the NYSE conducts its delisting. But American investors who currently own Cnooc shares listed on the New York Stock Exchange may have a difficult time converting them to overseas shares, and many may choose to sell in the coming days. Shares listed on the New York Stock Exchange fell 2.8% on Friday to $ 118.74.

In January, the NYSE delisted three Chinese telecommunications companies that were covered by Trump’s executive order, following a puzzling back and forth in which the Big Board first said it was delisting them, then backtracked, just to reverse again. People familiar with the matter blamed the NYSE’s changes on the outgoing administration’s confusing guidance.

Some US investors sold their shares in Chinese telecoms companies at a loss before the order went into effect in January, while others who weren’t stuck with shares they couldn’t sell or transfer due to restrictions on securities trading.

Cnooc was not on the initial list of Chinese companies covered by Trump’s order when he signed it in November, but it was added later, so the NYSE took no action to remove Cnooc from the list until now.

Trump’s order prohibited Americans from trading securities of dozens of Chinese companies, although only a few of them have a significant presence in the US capital markets. The goal of the order was to prevent money from American investors from helping Beijing’s efforts to modernize its military and security services. It came amid a series of other last-minute measures by the Trump administration that blocked tough policies against China before President Biden took office.

The previous Friday, The Wall Street Journal reported that the Biden administration plans to allow a Trump-era rule aimed at combating Chinese tech threats to take effect next month, despite objections from American companies.

That rule, which is separate from the executive order that led to the NYSE’s delisting, allows the Commerce Department to prohibit technology-related business transactions that it determines pose a threat to national security, as part of an effort. for securing American supply chains.

Write to Alexander Osipovich at [email protected]

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It appeared in the print edition of February 27, 2021 as ‘NYSE Set To Delist Chinese Oil Giant’.

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