China's Airlines Might Follow the Multibillion-Dollar Delisting From US Stock Markets: Bloomberg

Author: Akanksha Bakshi | August 15, 2022 08:01am

• Analysts believe that China's state-controlled airlines will be the next probable group to leave the U.S. stock exchanges, maybe followed by technology giants, writes Bloomberg.
• The decision by five Chinese state-owned enterprises to leave U.S. stock markets raises doubts about whether authorities in both countries can agree on disclosure regulations.
• Beijing officials cite national security and secrecy issues as their justifications for not allowing U.S. Public Company Accounting Oversight Board inspections in China and Hong Kong.
• U.S. lawmakers are considering pushing a bill to forward the 2024 delisting deadline to next year for non-compliant corporations.
• China Eastern Airlines Corp.(NYSE:CEA) and China Southern Airlines Co.(NYSE:ZNH) may "soon" make announcements of voluntary delisting, similar to those made on August 12 by companies including China Life Insurance Co. (NYSE:LFC) and PetroChina Co.(NYSE:PTR), according to Redmond Wong, a Greater China market analyst at Saxo Bank.
• Also Read: China Denies Researching Any 'Delisting Survival Plan' For US-Listed Companies Like Alibaba, Nio
• Both airlines are controlled by the Assets Supervision and Administration Commission of the State Council (SASAC), the same entity that rules over four of the companies that disclosed their US-exit plans last week, he added.
• Price Action: CEA shares closed higher by 0.88% at $18.41, ZNH closed higher by 1.76% at $27.16, and PTR closed lower by 0.11% t $8.83 on Friday. LFC is trading lower by 2.03% at $7.25 during the premarket session on Monday.
• Photo via Wikimedia Commons

Posted In: CEA LFC PTR ZNH