China Tells

Sinopec reports a doubled up profit this year, leading itself ahead of its rivals Petro China and CNOOC (See Article from WSJ). Sinopec is among one of the biggest China’s SOEs to enjoy a close to monopoly position in marketing the fuel products. Recently China government has amended the regulation to let domestic fuel price to follow international price more closely. In such case, big SOEs like Sinopec are better off if the international oil price goes up. The monopoly status of companies like Sinopec has been a criticized focus by economists that it impedes the market to make resource allocation more efficient. China is world’s second biggest oil consumer and third biggest importer.

中石化发布盈利公报，显示其09年盈利比上年翻一番，极大提升股东信心。中石化和中石油，中海油是中国三大石油企业，垄断国内油料供应。由于中国是世界第二大石油进口国，因此中石油等公司对国内油品的供应和定价有举足轻重的作用。