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