Zhenhai Refining & Chemical Co has no plans to issue shares to finance the third phase of its development. The H-share company's chairman, Zhang Jiaren , said: 'It is not our priority to consider enlarging share capital, both H and A shares, for the expansion programme.' Zhenhai expects to complete the second phase of its expansion by the end of the year, which will enable it to refine eight million tonnes of crude oil. The third phase will increase its refining capacity to 12 million tonnes by 2000 and 16 million tonnes by 2004. Mr Zhang said the company had submitted its expansion plan to the State Council for ratification and he expected approval to be given next month. He did not comment on reports the company had applied to Beijing for raising US$190 million overseas. He also refused to say whether the company would issue convertible bonds, only saying it would raise funds through debt issues. Mr Zhang said the foreign currency would be used to buy overseas technology, know-how and equipment. The company has also applied to halve duties on imported facilities. For the yuan investment, it would be satisfied by internal resources and domestic bank loans, Mr Zhang said.