China’s airlines may join the multi-billion-dollar exit from US stock markets

The announcement on Aug 12 by firms including China Life Insurance Co and PetroChina Co could “soon” be followed by China Eastern Airlines Corp and China Southern Airlines Co, according to Redmond Wong, a Greater China market strategist at Saxo Bank.

BEIJING: The decision by five Chinese state-owned companies to leave US stock exchanges adds to scepticism that authorities in both countries can reach an agreement on disclosure rules, with analysts seeing state-controlled airlines as the next potential group to depart, possibly followed by Internet giants.

China and Hong Kong are the only jurisdictions worldwide that don’t allow inspections by the US Public Company Accounting Oversight Board, with Beijing officials citing national security and confidentiality concerns.