The supply of PetroChina shares in the market has increased by 638.73 million after a group of corporate investors were released yesterday from a six-month share sale lock-up on 30 per cent of the shares they acquired in March.
The released shares are equivalent to 3.63 per cent of the total issued shares of the mainland's largest oil producer, which has the largest market capitalisation among H shares.
PetroChina said China International Capital and Goldman Sachs (Asia) - global co-ordinators of the firm's share offer - had granted consent to release each of the investors from the lock-up on 30 per cent of the shares they bought ahead of the H-share's listing in April.
The investors - Cheung Kong (Holdings), Hutchison Whampoa, New World Development's controlling shareholder Chow Tai Fook Nominee and Sun Hung Kai Properties - had subscribed to US$350 million worth of PetroChina shares and had been previously prohibited from selling them until October 7.
Analysts said while the increased share supply could put pressure on the share price in the short term, the counter's relatively low liquidity and expectation that oil prices will remain buoyant for the remainder of the year would limit the downside.
'The counter was the least liquid in the market among H-shares,' said Pacific Challenge Securities research director Ricky Tam Siu-hing.
