Chinese Oil Company CNOOC To Be Delisted by NYSE

The New York Stock Exchange (NYSE) has announced plans to delist Chinese oil major CNOOC (CEO) on March 9, 2021. This follows the delisting of three Chinese telecom firms in January. US investors may have to sell their shares before then or take other actions. CNOOC can appeal the NYSE’s decision. However whether that leads to prevent delisting is not clear. Below is an excerpt from a journal article:

The New York Stock Exchange said it would delist Cnooc Ltd. CEO -2.84% , the Chinese oil major, to comply with an executive order signed by former President Donald Trump targeting companies that the previous administration said had links to the Chinese military.

Trading in American depositary shares of Cnooc will be suspended at 4 a.m. ET on March 9, the NYSE said in a statement.

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 order has remained in effect under the Biden administration.

Cnooc, one of the main Chinese state-controlled oil-and-gas producers, didn’t 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 carries out its delisting. But U.S. investors who currently hold Cnooc’s NYSE-listed shares may have difficulty converting them into overseas shares, and many may choose to sell in the coming days. The NYSE-listed shares fell 2.8% Friday to $118.74.

Source: NYSE Moves to Delist Chinese Oil Company, WSJ, Feb 26, 2021

Holders of CEO can checkout the below articles for possible options available to recover their investment:

As of Friday’s close, Cnooc had a market cap of $53.1 billion and 446.5 million ADRs were outstanding.

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