On Friday, oil behemoths Sinopec and PetroChina, insurance heavyweight China Life Insurance, Chinese aluminum giant Chalco, as well as a Shanghai-based subsidiary of Sinopec announced they were pulling out of the stock market. from New York.
All justify this decision by the costs associated with maintaining listings in the United States, as well as the burden of meeting audit obligations.
But since 2020, a law passed in the US Congress requires any company listed in the United States to have its accounts certified by an approved firm.
In the event of non-compliance, companies in violation risk delisting from the American Stock Exchange from 2024.
Companies from Mainland China and Hong Kong are notorious for not going through this process.
The five groups are on a list of companies given formal notice by the US market regulator (SEC) to comply with accounting obligations.
Their decision is based on “commercial considerations”, justified in a press release the Chinese regulator of the financial markets.
In a context of growing confrontation with Washington, particularly in the technological field, China is now encouraging its nuggets to seek financing on its stock exchanges (Hong Kong, Shanghai, Shenzhen or even Beijing).
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