NYSE moves to deregister Chinese oil company

The Big Board’s regulatory arm determined that Cnooc was “no longer suitable for listing” in light of the executive order, which Mr. Trump signed in November. The ordinance remained in effect under the Biden administration.

Cnooc, one of China’s major state-controlled oil and gas producers, did not immediately respond to a request for comment.

The company will continue to have shares listed on the Hong Kong Stock Exchange even after the NYSE goes delisting. But U.S. investors who currently own Cnooc’s New York Stock Exchange listed shares may have difficulty converting them to foreign shares, and many may choose to sell in the coming days. NYSE-listed stocks fell 2.8% on Friday to $ 118.74.

In January, the NYSE deregistered three Chinese telecommunications companies covered by Mr. Trump’s executive order, following a bewildering back-and-forth in which the Big Board first said it was removing them from the list, then backtracked, only to tip over again. People familiar with the matter blamed the NYSE reversals on the outgoing administration’s confused advice.

Some U.S. investors sold their shares in Chinese telecoms at a loss before the order went into effect in January, while others who did not get stuck with shares they couldn’t sell or transfer. due to restrictions on trading in the securities.

Cnooc was not on the original list of Chinese companies covered by Mr. Trump’s order when he signed it in November, but it was added later, which is why the NYSE took no action. to remove Cnooc so far.

Mr. Trump’s order prohibited Americans from trading in the securities of dozens of Chinese companies, although only a few of them have a significant presence in U.S. financial markets. The goal of the order was to prevent American investor money from helping Beijing’s efforts to modernize its military and security services. It came amid a series of other last-minute measures by the Trump administration that locked up tough policies against China before President Biden took office.

Earlier on Friday, the Wall Street Journal reported that the Biden administration planned to allow a Trump-era rule aimed at tackling Chinese technology threats to come into effect next month, over objections from U.S. companies.

This rule – which is separate from the executive order that led to the NYSE write-offs – allows the Commerce Department to prohibit technology-related business transactions that it believes pose a threat to national security, as part of an effort to secure U.S. supply chains.

Write to Alexander Osipovich at [email protected]