China Southern Airlines, China Eastern Airlines to delist from NYSE amid exodus of state-owned enterprises from US exchanges
- China Southern Airlines and China Eastern Airlines said they will voluntarily delist ADRs from the NYSE, with trading to stop by February 2 the earliest
- Their delistings follow the exits of five other Chinese state-owned enterprises from the New York bourse in August last year
Two Chinese state airlines announced on Friday they would delist from the New York Stock Exchange (NYSE), adding to a list of state-owned companies withdrawing from US capital markets amid tightened scrutiny by Washington.
The two companies were the only Chinese state-owned enterprises (SOEs) listed on the NYSE as of September 30, 2022, according to a table compiled by the US-China Economic and Security Review Commission, an American government agency.
Those considerations included the limited trading volume of the companies’ ADRs as compared with the global trading volume of their H shares, the considerable costs of maintaining the listings of the shares in the US and related obligations, and the fact that they had never utilised the NYSE for any follow-on financing after listings in the US.
The stock exchanges in Shanghai and Hong Kong are strong enough to support the companies’ financing needs, the carriers also said.