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Bloomberg: Sinopec’s Shares Jump; Nears Shell, World’s No. 4 Oil Company

By Ying Lou

Oct. 18 (Bloomberg) — China Petroleum & Chemical Corp. jumped in Hong Kong trading, briefly overtaking Royal Dutch Shell Plc as fourth in the global ranking of oil and gas companies.

Asia’s biggest refiner gained as much as 8.8 percent, valuing the company at HK$2.1 trillion ($272 billion). The stock surged along with other companies listed in the territory after Beijing regulators said yesterday they may allow arbitrage between shares traded on the mainland and in Hong Kong.

Limits on inward and outward investment have helped China’s CSI 300 Index almost triple this year, making the Hong Kong- traded shares of Chinese companies a cheaper alternative for investors. Allowing arbitrage will end price discrepancies amid a concern a bubble is building. Sinopec’s Shanghai shares trade at double the price of its Hong Kong stocks.

Sinopec retreated later, trading 3.2 percent higher at HK$12.60 at 10:12 a.m., valuing China Petroleum, known as Sinopec, at HK$2.085 trillion ($269 billion). Sinopec and Shell, valued at 133 billion pounds ($271.7 billion), lag behind Exxon Mobil Corp., PetroChina Co. and OAO Gazprom.

To contact the reporter on this story: Ying Lou in Hong Kong at [email protected]

Last Updated: October 17, 2007 22:23 EDT

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