New York Stock Exchange-listed Chinese state-owned companies whose audits are being scrutinized by the US securities regulator are delisting voluntarily. The Aluminum Corporation of China (Chalco), the oil giant Sinopec, China Life Insurance, PetroChina, and Sinopec Shanghai Petrochemical Co have announced they will delist their American Depository Shares this month. However, they will keep their listings in Hong Kong and mainland China.
Chalco is a leading company in the Chinese non-ferrous industry sector, with a strong portfolio of assets among global competitors. It is the world's largest alumina producer and one of the leading aluminium producers by volume, with mining operations in bauxite and coal.
The US Securities and Exchange Commission flagged the five companies and many others in May 2022 for failing to meet US auditing standards. However, the companies did not broach the variance in their statements, as tensions scaled after Nancy Pelosi, the US House of Representatives Speaker, visited Taiwan.
The two largest world economies, China and USA, are in discussions to settle a long-running audit dispute which may result in Chinese companies being barred from US exchanges if China does not comply with Washington’s demand for complete access to the books of Chinese companies listed on US exchanges.
China prohibits foreign inspection of audit documents from local accounting firms, citing national security concerns.
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