- 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.CEA and China Southern Airlines Co.ZNH may "soon" make announcements of voluntary delisting, similar to those made on August 12 by companies including China Life Insurance Co. LFC and PetroChina Co.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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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