Sinopec Yizheng shares tumble amid probe of Oilfield Service chief

Shares of Sinopec Yizheng Chemical Fibre, which has just received approval from mainland securities regulators to buy its ultimate parent’s oilfield services assets for 24 billion yuan (HK$30 billion), dropped 12.2 per cent yesterday, after it confirmed the chief of Sinopec Oilfield Service is under investigation and has left the company.

In a filing to the Hong Kong stock exchange, Yizheng yesterday said Xue Wandong, a general manager and director of Sinopec Oilfield Service, was under investigation and had tendered his resignation letter to the board, without giving a date.

“As a result, the board will not nominate him as a candidate for vice-chairman and general manager of [Yizheng] for shareholders’ approval at [the] next shareholders meeting,” it said.

Xue was a candidate for the positions after the completion of the sale of China Petrochemical Corp’s oilfield services assets to Yizheng.

Yizheng said its board did not expect its business after the asset injection would be affected by Xue’s resignation and investigation, without offering an explanation of the nature of the investigation.

The company said it had received approval on Thursday from the China Securities Regulatory Commission for the asset injection.