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Cnooc shares soar on Shanghai debut after US delisting on security grounds

Shares of China National Offshore Oil Corporation soared 44 percent in their Shanghai debut, with the oil and gas maker completing the country’s largest listing of the year after being forced to wipe out U.S. trading due to national security concerns.

Cnooc raised $ 28.02 billion ($ 436 billion) after being delisted from the New York Stock Exchange in October, following the Trump administration Prohibition order US investments in companies considered part of China’s military-industrial complex.

On Thursday, the company’s stock reached a high of 15.55 yuan, compared to an issue price of 10.8 yuan, and trading was suspended shortly after rising by the maximum amount. The stock closed up 28%.

The IPO, which came amid rising oil prices following Russia’s invasion of Ukraine, underscored strong demand for listings in China’s stock markets even when its economy is booming Increasing pressure From the Cubid 19 restrictions.

Shanghai, the largest city in China, has been under severe closure since the end of March, Limit millions To their homes. But the financial services continued to operate through a combination of remote work and staff living in their offices.

In a submission to the Shanghai Stock Exchange last week it was said that the offering was listed 234 times over.

Cnooc, the only China-run oil business subject to U.S. sanctions, is also listed in Hong Kong, where its shares fell 4 percent. The Shanghai stock offer was the latest “Homecoming” entry. From a Chinese company that was forced to leave Wall Street or for fear it might be.

Many Chinese technology groups still trading in New York, including Alibaba and NetEase, have also set up secondary listings in Hong Kong as U.S. regulators push Beijing to grant access to Company audit documents.

The worsening geopolitical tensions between China and the US over the past two years could further disrupt capital markets. Last week, analysts at research firm CreditSights suggested that “the risk of more Chinese companies entering US sanctions is rising” pointing to Chinese and other oil exposures Sanctions on Russian energy exports.

In January, China Mobile, the world’s largest subscriber telecom company, Listed its shares in Shanghai Having also been deleted by the NYSE.

China Telecom shares, which were listed in Shanghai in August, are down more than 13% from their issue price. China’s CSI-300 index of shares traded in Shanghai and Shenzhen fell by about 20 percent this year.

Cnooc shares soar on Shanghai debut after US delisting on security grounds Source link Cnooc shares soar on Shanghai debut after US delisting on security grounds

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