China has announced a massive scheme to move 800,000 workers out of the state-run onshore oil industry within the next four years in order to prepare it for listing on the domestic stock market. In June, the China National Petroleum Corp (CNPC), which supervises the industry, allowed Daming to become the first company in the sector to be listed in Shenzhen. More than US$26 million was raised from Daming's share issue. Two other companies will soon follow suit and China is now preparing the onshore oilfields for listing. CNPC business bureau director Wang Huangjin told the business weekly of China Daily that the listings indicated corporate management reform had made a giant step forward. His bureau claims that its efforts to place the industry on a commercial footing in line with international standards include establishing seven holding companies, 60 limited liability companies and 100 co-operative enterprises. China aims to create large multinational oil corporations and to tap international capital markets. Currently the sprawling state-run industry not only produces oil but operates a web of businesses which make chemicals, building materials, machinery, electronics, household appliances, processed agricultural products and which run a number of transport operations. China has already moved 450,000 redundant workers out of oil into these businesses. In the net four years, half the remaining workforce of 1.6 million will be transferred into the non-oil sector. Mr Huang said CNPC aimed to double annual sales of non-oil products and services to 50 billion yuan (about HK$46.5 billion) by 2000. Over the past five years, output in these businesses grew at an average annual rate of 38 per cent while profits rose by 27 per cent.