Sinopec announced that its board has approved a plan to separately list its fuel marketing unit, Sinopec Marketing, by selling a 10% stake to investors. The South China Morning Post reported that the listing will most likely take place on the Hong Kong Stock Exchange.
The chairman of Sinopec Marketing, Zhang Haichao, said the announcement marks a major milestone and will “accelerate its strategic transformation from an oil product marketer to a comprehensive service provider.”
Sinopec announced the introduction of private capital into its oil marketing business in February 2014.
The listing is in line with the Chinese government’s plan for state-owned enterprises in seven sectors, including petroleum, railways and aviation, to experiment with mixed ownership.
Sinopec said the listing plan remains subject to approval by Sinopec Marketing’s board of directors and shareholders, as well as by domestic and foreign regulatory authorities, including the Assets Supervision and Administration Commission and the China Securities Regulatory Commission.
The move is rumored to be followed by a stake sale and separate listing of PetroChina’s natural gas distribution business.