China oil majors may face US after NYSE drops – News

China oil majors may face US after NYSE drops – News

The New York Stock Exchange said last week that the three largest telecom companies in the Asian country would be removed.

According to Bloomberg intelligence analyst Henik Fung, China’s largest offshore oil producer CNOOC Ltd. It may be most at risk because it is included in the Pentagon’s list of companies that own or control the Chinese military. The PetroChina Company Ltd and China Petroleum and Chemical Corp, also known as Sinopec, could also be under threat because the energy sector is important to China’s military, he said.

Steven Leung, executive director of UOB’s Hian in Hong Kong, said “more Chinese companies may be delayed in the US and oil majors may come in as the next wave.” Also, the impact of removing telecom firms is probably minimal because they were in thin business in the US and have not raised much funds there.

The NYSE said it would force telecom operators to comply with the US military order, which bans companies affiliated with the Chinese military. The exchange said that China Mobile Limited, China Telecom Corp Limited and China Unicom Hong Kong Limited would be suspended from trading between January 7 and January 11 and the deal would begin.

China’s Ministry of Commerce responded on Saturday, stating that the country would take necessary actions to protect the rights of Chinese companies and hoped that the two countries could work together to create a fair and predictable environment for businesses and investors. .

US President Donald Trump signed an order in November stalling US investment on Chinese companies or controlled by the military in a bid to pressure Beijing over abusive business practices . The order banned US investors from buying and selling shares in a list of Chinese companies designated by the Pentagon that had military ties.

China’s foreign ministry later accused the US of “lewd condemnation” for its military-civilian integration policies and vowed to protect the country’s companies. Chinese officials have also threatened to respond to previous actions of the Trump administration with their blacklist of American companies.

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