The major Chinese oil companies listed on the New York Stock Exchange are facing the risk of being delisted from the stock market after announcing the delisting of the shares of the three largest Chinese telecommunications companies.
According to Henk Fung, an economic analyst at Bloomberg Intelligence, an economic analysis service, Knock Limited, the largest Chinese oil company, has become more likely to be written off after being listed by the US Defense Department on the list of Chinese companies under the Chinese military.Fong added that Petro China, China Petroleum and Chemical Corp, also known as “Sinopec”, are facing the risk of delisting.
“More Chinese companies may be delisted on the American stock market and the major oil companies may be in the next wave” of the stock write-off decisions, said Stephen Leung, CEO of UOB Kai Haiyan in Hong Kong.
On the Hong Kong Stock Exchange, Knook shares fell almost 5.7% today, Petro China fell 2.9%, and Sinopec fell 0.6%, according to Bloomberg News.
The New York Stock Exchange announced its intention to write off the shares of Chinese telecom companies, in implementation of the US executive order to impose restrictions on companies affiliated with the Chinese army. Shares of China Mobile Limited, China Telecom Corp. and China Unicom Hong Kong will stop trading on the New York Stock Exchange between January 7 and 11 this year.