Chinese scales will be removed off the US list

Amid an audit dispute, PetroChina, Sinopec, and China Life intend to delist New York. The top five state-owned businesses in China have made preparations to leave US exchanges.

The US and China are attempting to come to an agreement that would let US authorities to see Chinese companies’ audits. China Life Insurance Co., PetroChina Co., China Petroleum & Chemical Corp.

, Aluminum Corp. of China, and Sinopec Shanghai Petrochemical Co. all announced their plans to delist in announcements that were released one after the other.

Giving US inspectors access to the audit records of Chinese enterprises has been a point of contention between the US and China for the past 20 years. There is still no consensus among the negotiators.

Only two countries in the world—China and Hong Kong—permit US Public Company Accounting Oversight Board audits. Additionally, officials claim that this bureaucratic issue raises issues of national security and privacy.

The delisting proposals, according to the China Securities Regulatory Commission, were driven by the firms’ commercial objectives. As the US Securities and Exchange Commission tightens its control over Chinese corporations, 300 Chinese and Hong Kong-based companies with a combined market value of more than $2.4 trillion are at risk of being listed on US markets.