To The Moon

Five Chinese companies, including PetroChina (4.970, -0.04, -0.80%), Sinopec (4.430, 0.03, 0.68%), Shanghai Petrochemical (3.150, 0.01, 0.32%), Chalco (4.450, -0.09, -1.98%), and China Life Insurance (37.650, 0.95, 2.59%), will apply for voluntary delisting from the New York Stock Exchange. On the same day, the China Securities Regulatory Commission responded, stating that the company's decision to delist was based on its own commercial considerations. The company's continued use of domestic and international capital markets for financing and development is unaffected by the current delisting plan.

According to the company's announcement, on August 12, US Eastern Time, the company notified the New York Stock Exchange that it will apply for voluntary delisting of its American depositary shares from the New York Stock Exchange in accordance with the US Securities Exchange Act of 1934 and other relevant regulations. Regarding the reason for the delisting application, PetroChina stated that current depositary shares account for a small proportion of the company's H shares and total number of shares, and the trading volume is relatively low compared to the company's global H share trading volume.

PetroChina also stated that continuing to maintain the disclosure obligation of depositary shares listed on the New York Stock Exchange requires the company to pay a relatively large administrative burden due to differences in the regulatory rules of different listing places. The company has never used the New York Stock Exchange's secondary financing function, and the Stock Exchange and the Shanghai Stock Exchange are highly replaceable in terms of financing the company's normal operations. Following a thorough review, PetroChina's board of directors approved the delisting of depositary shares from the New York Stock Exchange.

Almost simultaneously, Sinopec, Shanghai Petrochemical, Chalco, China Life, and a slew of other Chinese concept stocks announced that they had applied for voluntary delisting of their American depositary shares from the New York Stock Exchange. The reasons for each company's delisting are similar to Sinopec's. The main reasons for this are the limited trading volume of depositary shares and the high administrative cost of listing.

According to the relevant person in charge of the China Securities Regulatory Commission, listing and delisting are part of the normal state of the capital market. According to relevant corporate announcements, these companies have strictly followed U.S. capital market rules and regulatory requirements since their initial public offering in the United States, and their delisting decisions are based on their own commercial considerations. These companies are listed in multiple locations, and the proportion of securities listed in the US is very small. The company's continued use of domestic and foreign capital markets for financing and development is unaffected by the current delisting plan.The China Securities Regulatory Commission respects company decisions made in accordance with the rules of overseas listing places and based on their own actual conditions. We will continue to communicate with relevant overseas regulatory agencies in order to jointly protect the legitimate rights and interests of businesses and investors.