NYSE moves to withdraw Chinese oil company

The Big Board’s regulatory arm determined that Cnooc “was no longer fit to trade” in light of the executive order, which Trump signed in November. The order has remained in effect under Biden’s administration.

Cnooc, one of the main Chinese state-controlled oil and gas producers, did not immediately respond to the request for comment.

The company will continue to have shares listed on the Hong Kong Stock Exchange even after the NYSE makes its listing. But U.S. investors who currently have shares listed on Cnooc’s NYSE may have difficulty turning them into overseas stocks and many may choose to sell in the coming days. Shares of shares on the NYSE fell 2.8% on Friday to $ 118.74.

In January, the NYSE withdrew the termination of three Chinese telecommunications companies that were covered by Trump’s executive order, following a baffling back-and-forth in which the Big Board first said it would withdraw them, and then it receded, to be reinvested. People familiar with the matter blamed the NYSE’s investments for a confusing orientation of the outgoing administration.

Some U.S. investors sold their shares in Chinese telecommunications without a loss before the order went into effect in January, while others were not caught with shares they were unable to sell or transfer due to restrictions on securities trading.

Cnooc was not on the initial list of Chinese companies covered by the Trump order when it signed it in November, but it was added later, which is why the NYSE has not taken steps to withdraw Cnooc so far.

The Trump order banned Americans from trading securities of dozens of Chinese companies, even though only a few of them have a significant presence in U.S. capital markets. The purpose of the order was to prevent money from American investors from aiding Beijing’s efforts to modernize its military and security services. It came amid a series of other last-minute moves by the Trump administration that closed tough policies against China before President Biden took office.

Earlier Friday, the Wall Street Journal reported that the Biden administration plans to allow a Trump-era rule aimed at combating Chinese technological threats to take effect next month, in the face of objections from U.S. companies .

This rule, which is independent of the executive order that led to the withdrawal of the NYSE, allows the Commerce Department to ban technology-related business transactions that it determines pose a national security threat, part of an effort. to secure U.S. supply chains.

Write to Alexander Osipovich to [email protected]