SHANGHAI Petrochemical makes synthetic fibres, resins, plastics and petroleum products.
This time last year, brokerage Credit Lyonnais placed a buy on the H share.
It said plant-expansion would help it boost profits by 27 per cent in 1996.
This proved poor advice as rising oil prices, the opening of the domestic market and over-capacity in the region have cut into earnings.
That message was driven home to investors last August when the company reported a 34 per cent fall in interim profits.
Twelve months ago, Shanghai Petrochemical shares traded at $2.50. Now they are worth $2.15, having under-performed the Hang Seng Index by 30 per cent.