State-owned China Eastern Airlines and China Southern Airlines both announced in statements on Friday evening that they plan to delist their American depositary shares from the New York Stock Exchange.
American depositary shares refer to shares in foreign companies that are held by US depositary banks and can be traded in the United States.
China Eastern said from the business perspective, the amount of American depositary shares it has in the NYSE has been relatively small and remaining listed will require them to be compliant with regular reporting and obligations under the related law, which involves high costs, according to its statement.
China Southern said since listing its American depositary shares on the NYSE, the company has never made subsequent financing for the securities listed on the bourse, and being compliant with related regulations involves high costs. Moreover, the Hong Kong Stock Exchange and Shanghai Stock Exchange boast strong substitutability, which can meet the financial needs of the company’s regular operation, it said in the statement.