The NYSE (New York Stock Exchange) has announced a decision to commence proceedings to delist the ADRs of CNOOC Limited, China’s largest offshore oil producer.
The decision that CNOOC is “no longer suitable for listing” was made in light of Executive Order 13959, which was signed by former President Trump in November 2020, as well as updated guidance provided by OFAC (Office of Foreign Assets Control) in January 2021.
The Executive Order banned US persons from investing in companies with ties to the Chinese military. The OFAC guidance said prohibitions on CNOOC, China Mobile, China Telecom, and China Unicom would begin on 9 March 2021, 60 days after they were added to the list that prohibits US investments.
Trading in CNOOC’s ADRs will be suspended at 4.00am EST on 9 March 2021, NYSE said, adding that the company has the right to appeal the decision.
In January, NYSE announced a decision to delist the ADRs of China Telecom, China Mobile and China Unicom to comply with Executive Order 13959, only to later reverse the decision. The delistings were ultimately enforced, though the three companies applied to NYSE for a review of the decision.
