Following reports of the New York Stock Exchange deciding to remove the three largest Chinese telecom companies, Chinese oil companies look to be the next in line to be delisted. The company that’s most in the hot seat is CNOOC Ltd—and they also happen to be the biggest offshore oil producer in China.
Considering the fact that they’re owned and operated by the Chinese military, this has certainly made them vulnerable to getting delisted.
PetroChina Co Ltd and China Petroleum & Chemical Corp are also both at high risk of becoming delisted. Steven Leung, executive director at UOB Kay Hian, explained that the impact of removing oil majors will be far greater than the removal of telecom companies as telecom stocks are not as frequently traded in the US. Also, they have not managed to raise the same funds.
While the US government has imposed sanctions against Chinese companies with ties to the Chinese military, the Ministry of Commerce hit back on Saturday, explaining that the government would take whatever actions are necessary to protect the rights of Chinese companies. Furthermore, it expressed the desire to cooperate with the US government to create an open trade environment.
