Sinopec To Privatize and Boost Profits

China?s Sinopec, the biggest oil refiner in Asia, is considering the possibility of privatizing its listed subsidiaries, beginning with Sinopec Beijing Yanhua Petrochemical, to streamline its assets.

Yanhua, the largest resin and plastics maker in China, halted the trading of its shares Wednesday on talks of the restructuring. Sinopec may boost its profits, privatizing Yanhua, but it would come at a higher price for the refiner.

Yanhua?s net profit soared to 633.9 million yuan in 2003, up 203 per cent from a year ago, on strong petrochemical margins.