In compliance with an executive order by former US President Donald Trump, the New York Stock Exchange (NYSE) will move to delist CNOOC Ltd., the Chinese oil major
“Trading in American depository shares of CNOOC will be suspended at 4 am ET on March 9,” the NYSE said in a statement.
It’s the fourth Chinese company to be slapped with such a punishment.
The exchange said in January that it would end trading of shares in China Mobile, China Telecom and China Unicom to comply with Trump’s order targeting companies that the previous administration said had links to the Chinese military.
CNOOC’s Hong Kong-listed shares dropped 1.1 per cent on Monday.
The Big Board’s regulatory arm determined that CNOOC was ‘no longer suitable for listing’ in light of the executive order, which Trump signed in November 2020. The order has remained in effect under current US President Joe Biden’s administration.
The company will continue to have shares listed on the Hong Kong stock exchange even after being delisted by NYSE. However, US investors who currently hold CNOOC’s NYSE-listed shares may have difficulty converting them into overseas shares and many may choose to sell in the coming days.
CNOOC was not on the initial list of Chinese companies covered by Trump’s order when he signed it in November, but was added later, which is why the NYSE did not take action to delist the Chinese company until now.
The goal of Trump’s order was to stop US investors’ money from aiding Beijing’s efforts to modernise its military and security services.