In the future, privatization will adopt various methods commonly used in the capital market, such as stock exchange, asset replacement and tender offer. (At present, the company privatization plan involving A+H and complex equity is being communicated with the regulatory authorities). As for the privatization of other subsidiaries, he said that there is no timetable yet, but the general direction is "integration".

Wang Jiming pointed out that at present, an important reason that hinders the privatization process from being completed within this year is that some companies are A-shares plus H-shares, and their structures are complicated, involving different securities regulatory laws in Hong Kong and the Mainland. At present, the privatized companies of Sinopec are all single A or H companies. He also said that there is no problem with privatization funds. The source of funds is partly self-owned funds (partly loans within the bank's credit line), and there is no need to issue shares at present.

Hong Xin Information believes that Wang Jiming's statement has clearly revealed that Shanghai Petrochemical and Yizheng Chemical Fiber have started the privatization process because "they are currently communicating with the regulatory authorities". As for the explanation of the source of funds, it is also consistent with the news we got, that is, the Agricultural Bank of China lent Sinopec 20 billion yuan. Judging from the amount of 20 billion yuan, the repurchase prices of Shanghai Petrochemical A-share 6.4 yuan, Shanghai Petrochemical H5.2 Hong Kong dollars and Yizheng Chemical Fiber 4.25 yuan circulating in the market are basically credible, because it is just about 20 billion yuan according to this price.

In addition, we have also noticed the Xinhua News Agency's report that Wang Jiming said that the time is ripe for the reform of refined oil prices, which also reflects that China Petrochemical's acquisition of Shanghai Petrochemical and Yizheng Chemical Fiber is just around the corner.