At least four major state-owned Chinese companies said Friday they intend to delist their stocks in the U.S., as Beijing seems unwilling to bend to increased U.S. scrutiny into the country's financial auditing practices.
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PetroChina and Sinopec will delist from the U.S. stock exchanges in the next month.
According to Forbes, PetroChina is the 21st largest company in the world and Sinopec is the 45th largest company.
All will be listed on the exchanges.
Chinese financial regulators said Friday the delistings are routine and talks with foreign regulators are ongoing.
The Holding Foreign Companies Accountable Act was signed into law by former President Donald Trump in December of 2020. The violators of the act were included in a list by the SEC in March. Beijing threatened to retaliate against the U.S. after Pelosi went to Taiwan.
It's over one trillion dollars. According to the U.S.-China Economic and Security Review Commission, that was the market cap of the Chinese companies listed in the U.S.
If other Chinese companies decided to delist in the U.S., the shares of the largest U.S. company by market value would fall.
The slide in China stocks on the New York Stock Exchange was led byAlibaba.
What is driving US-China spat over audits?
The fate of Chinese stocks listed in the U.S. depends on a single point.
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