China Petrochemical Corp (Sinopec) Monday officially launched its wholly owned affiliate, the China Petroleum & Chemical Corporation, in Beijing.

Shorn of non-core businesses, sub-performing assets and social functions that weigh down its parent company, the China Petroleum & Chemical Corporation focuses on petroleum exploration and production, and refining and petrochemical industries. It also possesses a comparatively complete nationwide sales network.

With registered capital of 68.8 billion yuan (US$8.29 billion), the China Petroleum & Chemical Corporation holds all of Sinopec's crude exploration capacity and also a majority of Sinopec's refining and ethylene production capacity. Thanks to sound performing of its assets, the new company is expected to have a strong money-earning ability.

In line with international practice, the China Petroleum & Chemical Corporation has adopted a standard corporate governance framework, including a board of directors, a board of supervisors and executive managers.

Sinopec President Li Yizhong was elected to be the chairman of the board of directors of the new company, while Sinopec Vice-President Wang Jiming has been nominated as its chief executive officer.