In separate statements released Friday, China Life Insurance, PetroChina, Sinopec, Aluminum Corporation of China and Sinopec Shanghai Petrochemical said they had notified the NYSE and filed for “voluntary delisting.”
All five companies cited “low US turnover” and “high administrative burden and costs” as reasons for leaving.
However, the news comes after the US Securities and Exchange Commission noted in May that all five companies did not meet US auditing standards.
The China Securities Regulatory Commission, which oversees China Securities, said on Friday that it is aware of the situation and that “it is normal for companies to list or delist in any market.”
“We will liaise with foreign regulators and work together to protect the rights of corporations and investors,” the statement said.
The news comes after the Securities and Exchange Commission stepped up its scrutiny of Chinese companies.
Chinese companies that are traded overseas must keep their audit documents in mainland China, where they cannot be verified by foreign agencies.
However, companies like Alibaba are taking steps to prepare for the potential loss of direct access to the US capital market.
Even before the commission added Alibaba to its watchlist, the company announced that it would seek an initial listing on the Hong Kong Stock Exchange.
Alibaba currently has a secondary listing on the Hong Kong Stock Exchange.
If the transition goes smoothly for Alibaba, it could “open the way” for many more Chinese ADRs, Citi analysts said.