What Will Happen To My Chinese ADR Stock?

What Will Happen To My Chinese ADR Stock? With all of the Chinese stocks being delisted these days, we at Rebellion Research asked CNOOC what would happen to their US ADR shares?

Furthermore, CNOOC very kindly responded to us with the instructions. Moreover, please read below:

There are two ways for you to deal with the ADR of CNOOC Limited:

1.   Firstly, ask your bank/broker to cancel the ADR and convert to HK shares. After conversion, you can trade the shares on the HKEX. Furthermore, attached is the conversion process and related schedule, you can send to your bank/broker. In addition, for conversion related questions, please ask your bank/broker to contact JP Morgan, our ADR depositary bank, for answers. The email address is jpm.adr.settlements@jpmorgan.com.

2.      Hold the ADR and wait until program termination for final sell down.

For additional questions, please contact us.

Below is the ADR cancellation procedures for your reference:

  1. Broker deliver the ADRs via DTC to J.P. Morgan ADR DTC account 0923.
    • Indicate in the comment field, “See Fax instructions”; “See DTC comments” or “as per Standing settlement instruction
    • J.P. Morgan will then charge an applicable US$5 per 100 ADSs fee, in addition to a US$20 cable fee as standard cancellation fees, or for more detail and concession please check with our traders drx_depo@jpmchase.com
  2. Create delivery instructions on cancellation form (as attached)
    • Security Name: CNOOC Ltd
    • CUSIP Number: 126132109
    • Settlement Date
    • Number of DRs
    • Institution where the ordinary shares will be delivered to in the local market (Name and BIC of bank, Beneficiary Name and Beneficiary Account Number).
  3. Email the cancellation form to our group email id:
  4. In conclusion, after J.P. Morgan ADR Team receives the ADRs, valid instructions and fee payment. Lastly, it will instruct its custodian to deliver the ordinary shares.
    • Ensure that your ordinary shares custodian is set up to accept delivery of the ordinary shares.
    • The ordinary shares will come from J.P. Morgan custodian – J.P. Morgan Chase Bank N.A. Hong Kong Branch (DCC)

Best wishes, Investor Relations Team, CNOOC Limited

In addition, Rebellion would like to thank the gracious CNOOC IR team for the help. Lastly, we are sad to see these shares leave the US markets. In addition, we wish the delistings were avoided. Furthermore, had the Chinese and US governments worked together, the result would have been better. As a result, of politics, this was not going to happen.

Lastly, you can still trade these shares on the Hong Kong exchange. In addition, Shanghai markets which are accessible from a number of US brokerages.

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What Will Happen To My Chinese ADR Stock?