China Petrochemical Corp (Sinopec Group), Asia's biggest refiner, will offer a combined total of 1.61 billion yuan in shares to A-share holders of subsidiaries Shanghai Petrochemical and Yizheng Chemical Fibre as part of its share reform programme. Sinopec said it will give the two company's minority investors an extra 3.2 shares for every 10 shares they now own to compensate them for any possible price slump caused by the conversion of non-tradable state-owned shares into tradable shares. It will hand out 230 million shares of Shanghai Petrochemical and 44.8 million shares of Yizheng Chemical. The 1.61 billion yuan value of the shares to be transferred is based on the last-traded prices of the two companies on September 29 - 6.2 yuan for Shanghai Petrochemical and 4 yuan for Yizheng Chemical Fibre. The average compensation ratio of 3.2 to 10 is higher than the 3 to 10 ratio for all A-share companies that had completed their share reforms by September 29, Sinopec said in a statement to the Shanghai Stock Exchange. In September, minority investors in the parent Sinopec, which is one of the biggest A-share companies by market value, were compensated against possible losses at a rate of 2.8 shares for every 10 shares they owned. Under the guidelines set out by the China Securities Regulatory Commission, A-share listed companies must submit plans for the conversion of all state-owned non-tradable shares into tradable shares by the end of this year. The government says that more than 90 per cent of companies by market value have either completed or are in the midst of carrying out their plans. The giveaway of shares in Shanghai Petrochemical will reduce parent Sinopec's stake in it to 52 per cent from 55 per cent, while Sinopec's holding in Yizheng Chemical Fibre will fall to 41 per cent from 42 per cent. All shares of the two units are to be fully tradable within three years of the implementation of the reform plan. State-owned Citic Group, the second-largest shareholder of Yizheng Chemical Fibre, will also give 30 per cent of its total compensation shares to private investors. Shareholders are to meet on November 8 to consider the compensation plans. Trading in shares of both Shanghai Petrochemical and Yizheng Chemical Fibre is to resume the day after the results of the meetings are announced.