Talks of Beijing’s energy pricing reforms result in gains in share prices

Shares of China’s state-owned oil and gas companies rose in early January amidst speculations that the government would initiate reforms in its domestic petroleum pricing scheme. The reforms are expected to be gradual, but analysts are confident that they would be key steps towards Beijing’s ultimate goal of allowing market trends to determine energy prices. Shares of PetroChina rose by 4.4% to HK$10.1 (US$1.29) while shares of China Petroleum & Chemical (Sinopec) went up by 5.5% to HK$8.62 (US$1.11). (January 4, 2012)