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SHANGHAI Petrochemical

Sinopec

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.

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