Chinese oil majors may be the next line for sales in the U.S. after the New York Stock Exchange said last week that it would divert the three largest telecom companies in an Asian country.
China’s largest offshore oil producer CNOOC could be at greater risk as it is on the Pentagon list of companies it claims to be owned or controlled by Chinese weapons, according to an intelligence analyst Bloomberg Henik Fung. PetroChina and China Petroleum and Chemical Corp., also known as Sinopec, may be at risk because the energy sector is critical to China ‘s military, he said.
“More Chinese companies could get to the U.S. and the oil majors could come as the next wave,” said Steven Leung, executive director at UOB Kay Hian in Hong Kong. At the same time, the impact of the removal of the telecom companies is minimal because they were thinly traded in the U.S. and did not raise much money there, he said.
The NYSE said it would force telecom operators to comply with a U.S. regulatory order imposing restrictions on companies identified as linked to Chinese weapons. China Mobile Limited, China Telecom and China Unicom Hong Kong would all be suspended from trading between January 7 and January 11, and proceedings until delivery have begun, the exchange said.
China’s Ministry of Commerce responded Saturday, saying the country would take the necessary steps to protect the rights of Chinese companies and hoped the two countries could work together to create a fair environment that was expected for businesses and investors.
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