CNPC Plans $3.18 Billion Capital Increase in Finance Subsidiary

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING: Anyverse Dynamics Raises Over $200 Million as China’s Robotics Funding Boom Accelerates; Europe Has a Lot to Learn From China About Electric Trucks, Volvo CTO Says; DeepSeek Plans Major Hiring Spree After $7.4 Billion Funding Round

LATEST: Geely-Backed Polestar Forced Out of U.S. by Chinese Auto Tech Ban; DeepSeek Plans Major Hiring Spree After $7.4 Billion Funding Round; Anyverse Dynamics Raises Over $200 Million as China’s Robotics Funding Boom Accelerates; Europe Has a Lot to Learn From China About Electric Trucks, Volvo CTO Says; Embodied AI Startup Kunlunxing Lands Multibillion Yuan Raise; ByteDance Targets July Launch of Upgraded AI Video Model; China’s Starlink Challenger Seeks Up to $2.2 Billion for Satellite Network Push; New Model Propels Zhipu AI’s Market Value to Record HK$1 Trillion; In AI Pitch, Alibaba Chairman Urges Europe to Look Beyond U.S. Tech; Cover Story: China’s AI Boom Is Rewiring Its Power Grid; In Depth: How AI Is Rewiring White-Collar Work in China; Chipmaker YMTC Cedes Control of Foundry Unit Ahead of Mega IPO; Chinese Startup Manifold AI Raises Fresh Funding as Investors Bet on ‘World Models’; Crealights Takes Step Closer to Hong Kong IPO as Data Center Boom Fuels Growth Prospects; Tencent Lets AI Agent Make Purchases Through WeChat Pay; Galaxea AI Chief Says China Could Lead Robotics Models Within Three Years; SiliconFlow Raises $294 Million as China’s AI Inference Demand Surges; Ant Revamps Alipay With AI Assistant in Biggest App Overhaul; New Model Sends Zhipu AI’s Stock Soaring; DJI, Insta360 File Competing U.S. Patent Lawsuits Over Camera Tech

By Isabelle Li and Luo Guoping / Jun 15, 2019 03:35 AM / Business & Tech

Photo: VCG

China National Petroleum Corp. (CNPC) and two subsidiaries proposed a joint capital increase with a total investment of more than 22 billion yuan ($3.18 billion) in its financial service unit CNPC Finance, according to a statement by its Hong Kong-listed subsidiary PetroChina Co. Ltd. Thursday night.

An industry expert told Caixin the move would enable the finance subsidiary to improve CNPC’s group-level capital planning. The capital injection will boost CNPC Finance’s registered capital from 8.33 billion yuan currently to 20 billion yuan. CNPC was established in 1995 with a registered capital of 800 million yuan.

According to the Thursday statement, around 8 billion yuan of the increased capital will be converted directly from the current capital reserve of CNPC Finance to registered capital, while the rest will be offered in cash by the three shareholders — CNPC, CNPC Capital, and PetroChina. CNPC owns 40% of the finance unit; CNPC Capital, 32%; and PetroChina, 28%. The proportions will remain unchanged after the proposed increase.

Contact reporter Isabelle Li (liyi@caixin.com)

Share this article

Open WeChat and scan the QR code