Sinopec, Shenhua see stakes increase
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Shanghai Daily, January 11, 2012
Sinopec Corp and Shenhua Energy Co said yesterday their state-owned parents have raised stakes in the listed units in a move analysts saw as boosting share prices and investor confidence.
Sinopec, China's largest oil refiner, said parent China Petrochemical Corp (Sinopec Group) has bought 39 million yuan-denominated Shanghai-listed A shares and 425 million Hong Kong-listed H shares to increase its holding from 75.84 percent to 76.38 percent.
"This could reassure investors about the firm's restructing under new Chairman Fu (Chengyu) and help the stock to continue to outperforme," Mirae Asset Securities analyst Gordon Kwan wrote in a note.
Shenhua's parent, the Shenhua Group, bought 10.8 million A shares to lift its stake in the country's biggest coal producer to 73.01 percent from 72.96 percent.
Their moves were made as the Shanghai Composite Index shrank by over one fifth last year, making the stock market one of the worst performers globally.
Meanwhile, Shanghai-listed China United Network Communications Ltd said its parent increased its stake in the firm from 61.05 percent to 61.07 percent.
