Sinopec Steps on Gas Pedal with Market-Based Reform

(Beijing) – State-owned oil giant China Petroleum and Chemical Corp. (Sinopec) said on February 19 it would restructure its sales unit and invite private investors to join. The move is part of the company's experiment with a mixed-ownership structure, and the first of its kind in the country's state-controlled oil industry.

It also promises huge investment opportunities for private investors because the sales unit is one of Sinopec's best assets. The news was warmly received. Investors hope the move will prompt the market to reevaluate Sinopec, whose shares have been below book value since June. Consumers hope the move sends a signal to other monopolies in the oil industry.