China Sinopec unit to sell 30pc stake

Chinese oil giant Sinopec will sell a 30 percent stake in its marketing arm to outside investors for more than $17 billion, the company said, as the government pushes key economic reforms.

China's Communist Party pledged at a meeting in November to allow the market to play a "decisive" role in the allocation of resources through a number of policies, including prodding state companies to operate on more commercial terms.

The move by Sinopec, initially proposed by the firm in February, has been hailed by state media as the first among the nation's three largest energy firms to introduce more diversified ownership.

"The sale of its marketing arm "is in line with their policy of privatisation and to introduce more private capital in the economy", independent financial analyst Francis Lun told AFP.

Separately, Sinopec parent China Petrochemical Corp. will purchase assets from Sinopec Yizheng Chemical Fibre Company, worth 6.49 billion yuan ($1.06 billion), both firms said in a filing late Friday.