CNPC acts on mar­ket-ori­ented tar­gets

China Daily (Hong Kong) - - BUSINESS | MARKETS - By ZHENG XIN zhengxin@chi­nadaily.com.cn

China’s oil gi­ant China Na­tional Petroleum Corp said on Wed­nes­day that it has im­ple­mented guide­lines on re­forms for a mar­ket-ori­ented econ­omy and mixed-own­er­ship.

“The re­forms to­ward a mar­ket-ori­ented econ­omy will help the com­pany im­prove its prod­ucts, pric­ing mech­a­nism and ser­vices. We will fur­ther es­tab­lish a mar­ket and benefit-cen­tered in­vest­ment, budget and as­sess­ment sys­tem,” said Wang Yilin, CNPC chair­man.

“The guide­lines will help pri­or­i­tize capital and the business struc­ture while en­sur­ing the main­te­nance and ap­pre­ci­a­tion of State-owned as­sets,” he said.

A mar­ket-ori­ented econ­omy is the di­rec­tion of China’s eco­nomic re­form and will be a ba­sic prin­ci­ple for the com­pany, Wang said.

China has re­cently stressed the sig­nif­i­cance of deep­en­ing eco­nomic re­forms and mixed own­er­ship for State-owned en­ter­prises, es­pe­cially those in the fields of oil and nat­u­ral gas and rail­ways. This was em­pha­sized dur­ing the re­cent Cen­tral Eco­nomic Work Con­fer­ence, when Chi­nese lead­ers and se­nior of­fi­cials gath­ered to map out pri­or­i­ties for 2017.

Mixed own­er­ship is a sig­nif­i­cant break­through for the State-owned en­ter­prises re­form. The com­pa­nies should take sub­stan­tial steps through re­struc­tur­ing and re­form, joint ven­tures and co­op­er­a­tive oper­a­tions, ac­cord­ing to the con­fer­ence.

De­spite some progress made by the com­pany, there is a long way to go, said Wang.

The Na­tional En­ergy Ad­min­is­tra­tion has re­cently re­leased guide­lines for boost- ing the us­age of nat­u­ral gas, stress­ing that sys­temic re­form in the gas sec­tor should first take place in Shang­hai, Jiangsu prov­ince and He­bei prov­ince.

China Petroleum & Chem­i­cal Corp, an­other oil gi­ant in China usu­ally known as Sinopec, has re­cently sold a 50 per­cent stake in its pipeline unit to do­mes­tic in­vestors for 22.8 bil­lion yuan ($3.28 bil­lion), the first time the pipeline unit re­ceived an in­vest­ment from an­other in­de­pen­dent com­pany. Stocks of CNPC rose by 3.93 per­cent to 7.93 yuan on Wed­nes­day.

XIN­HUA

Em­ploy­ees of China Na­tional Petroleum Corp check pipe­lines of a sec­tion of West-to-East nat­u­ral gas pipe­lines in Yinchuan, the Ningxia Hui au­ton­o­mous re­gion.

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