Questions about the health of the Chinese giant Sinopec

   

China Petroleum & Chemical Corp., the largest Chinese oil group known as Sinopec, suffered a fall of 7.2 percent, yesterday, on the New York Stock Exchange, which represents its largest tumble in almost a year. The reason for this sudden concern: the announcement by the group, of its fund raising project. Sinopec announced, yesterday, that he wanted to issue 2.85 million shares at the stock exchange of Hong Kong, in order to raise by this means an estimated sum of US $ 3.1 billion. 

 

 However, in its press release, the tanker justifies this need of fresh capital by 'General projects of the company', rather than a specific merger. Even if there's strong rumors regarding a proposed acquisition valued at 1 billion dollars in Africa, and the company had recently paid $ 2.5 billion to take 20% of a nigerian offshore field until then owned by Total, it is seen as a sign that the group is probably under financial stress. This would be relatively logical, given that it must continue to sell its  refined products at a loss.