New Sinopec chairman suggests spin-off of business segments

Fu Chengyu, the new chairman of China Petrochemical Corp. (Sinopec) says that a spin-off listing might better reflect the valuation of the different business segments of Sinopec.  Speaking at a recent shareholders meeting of the Sinopec Group, Fu said that China’s three oil majors are unusual in that the companies cover both the downstream and upstream businesses.  Currently, Sinopec is reporting losses in the refining sector due to current state policy.  The chairman’s remarks triggered speculation about a spin-off listing for the Sinopec Group. (May 17, 2011)