NYSE moves to eliminate Chinese oil company

The Big Board’s regulatory group has determined that Cnooc is “no longer suitable for listing,” in light of the executive order signed by Trump in November. The order remained in force under the Biden administration.

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

The company will continue to hold shares listed on the Hong Kong Stock Exchange even after the NYSE deletes. But U.S. investors who currently own Cnooc’s NYSE-listed shares may have difficulty turning them into overseas stocks, and many may choose to sell in the coming days. Shares of the NYSE fell 2.8% to $ 118.74 on Friday.

In January, the NYSE fired three Chinese telecommunications companies that were covered by Mr. Trump’s executive order, following a confusing confusion in which the Big Board first said it would remove them from office, then downgrade, only to reverse. again. People familiar with the issue blamed the NYSE reversals on confusing guidance from the outgoing administration.

Some U.S. investors sold their Chinese telecommunications shares at a loss before the order went into effect in January, while others did not find themselves stuck with shares they could not sell or transfer due to restrictions on securities trading.

Cnooc was not on the initial list of Chinese companies covered by Mr. Trump’s order when it signed it in November, but was added later, which is why the NYSE has not taken steps to eliminate Cnooc so far.

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

Earlier on Friday, The Wall Street Journal reported that the Biden administration intends to allow a Trump-era rule aimed at combating Chinese technological threats to take effect next month on objections from US companies.

This rule – which is separate from the executive order that led to its withdrawal from the NYSE – allows the Department of Commerce to ban technology-related commercial transactions that it considers a national security threat as part of a chain security effort. US supply.

Write to Alexander Osipovich at [email protected]