Sinopec Initiates New MechanismChina Petroleum & Chemical Co., Ltd. (Sinopec) was listed on New York, Hong Kong and London Stock Exchange in mid-October. This is the pioneer enterprise which was simultaneously listed on three stock exchanges out of the mainland of China. Sinopec's initial public offerings were 16.78 billion H shares, raising US$ 3.462 billion.In the past two years, Sinopec was making great efforts to carry out its ambitious plan of strengthening the command of national economy, diversifying the structure of ownership, setting up a modern enterprise system. Sinopec started off its reform and system alteration plan with the idea that it should break its pillar industry from the complementary, fine assets from bad ones, and enterprise functioning from social functioning. As soon as the plan was fixed on, it operated on its business, assets, the creditor's rights and the debts, the organization, the personnel with the solution of reconstruction. It also distinguished its listed companies from the unlisted ones so as to collect the fine assets and industry to establish a legal person management, to expand the market, to improve the economic efficiency, to upgraded the traditional industry with electronic information technology, and to deepen the inside allotment reform. Being listed on foreign stock exchanges not only brought Sinopec capital and passport to the international capital market, but also offered it a chance to reform and initiate a new, market-oriented system and mechanism. The change first took place in the management system. And then the share rights of Sinopec were distributed as follows: state-held stocks (shares in listed companies held by state-owned enterprises, as a way of maintaining government control in the companies) were about 57%, state-run assets management companies and banks held 23%, foreign capital took 20%. Furthermore, it has set up a legal person management, and engaged an independent directorate to turn a new leaf from its previous weak sides in management. In addition, a market-oriented operation mechanism was established, and at the same time, Sinopec endeavored to adapt to the international market in operation, capital, financing cost and so on. |
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