The company is a world-class integrated energy corporation ranked No.6 in the '2006 Global Top 250 Energy Companies' published by Platts, an authority in the global energy sector, and No.1 in the Asia-Pacific region for five consecutive years. It is also the largest crude oil and natural gas manufacturer in China.

On 23 Sept 2008, the company announced that China National Petroleum Corp. (CNPC), the company's controlling shareholder, purchased 60 mln shares; bumping CNPC's holdings in the company to 86.32%. CNPC plans to further increase its holding by up to 2% within the next 12 months. It has also committed to not reducing its holding during the statutory period as a demonstration of confidence in the company's future; helping to stabilize its share price in the secondary market.

A giant in blue chip production, the company's share prices have seen a downward trend since its listing on the market, having lost up to 40% of its initial public offering price. However, recent developments in mid-Sept 2008 - reduced taxes and a major shareholder's holding increase - have strengthened share prices to resist dropping further against a background of rising uncertainties in the A-share market troubled by depressed foreign stock markets. Because of these two turns of events, the company's stock could, in the future, assist in stabilizing the market.

Source: Securities Times

Date: 13 Oct 2008

CN01/NW/DM/NK/KM