It is the case of a Chinese oil company that applied the directives of the Central Committee of the Communist Party regarding diversifying ownership structure of SOEs
The council has approved Sinopec oil restructuring of company sales to allow the entry of private capital.
A new openness to private capital of a state enterprise in China: the sales division of Sinopec oil products permit the presence of private capital.
Sinopec is the second largest supplier of refined petroleum products in the world and last year sold about 165 million tons in China. The restructuring of Sinopec begin after an assessment of its assets and liabilities.
Analysts believe that the decision is a milestone in breaking the dominance of state-owned enterprises in the energy sector. Sinopec is expected not to be the last case.
Zhang Xiaochun, Expert Committee on Supervision and Management of State Assets, said: "The Third Plenary Session of the eighteenth Central Committee of Communist Party of China has urged diversify the ownership structure of large state companies Sinopec is implementing this policy. After entering private equity, both sides can learn from each other and develop together. This could benefit the oil and petrochemical industries. "
Sinopec has not specified how much of the shareholders will be left in private hands, aiming to be decided according to market conditions. The company has said that the reform will help to improve the internal management and benefit consumers.