CHINA-US: CHINA'S FIVE TOP SOES ANNOUNCE PLANS TO DELIST FROM NYSE
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Five of China’s largest state-owned companies announced (August 12) their plans to delist
from US exchanges as the two countries struggle to come to an agreement allowing American
regulators to inspect audits of Chinese businesses. These are: China Life Insurance Co.,
PetroChina Co. and China Petroleum & Chemical Corp., Aluminium Corp. of China and Sinopec Shanghai Petrochemical Co. More recent reports claim that China Southern Airlines
and China Eastern Airlines, which are both controlled by the Assets Supervision and
Administration Commission of the State Council (SASAC) will also delist from NYSE.
(Comment: The jury is out on whether these companies delisting from the NYSE will adversely
impact on their market cap. As of August 2022, the market cap of these Chinese giants are as
follows: PetroChina ($132.11 billion); China Life Insurance ($94.88 billion); China Petroleum
& Chemical Corp ($70.23 billion). Aluminium Corp of China ($10.29 billion) is also the
world’s second-largest alumina producer and third-largest primary aluminium producer; and
Sinopec Shanghai Petrochemical Co.($3.77 billion) is a subsidiary of Sinopec (market cap:
$68.45 billion), and is one of the largest petrochemical enterprises in China. The market cap of
the New York Stock Exchange as a whole (currently stands at $26.2 trillion). )
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