Sinochem plans $5.5bn China share flotation

An oil refinery of China's Sinopec in Wuhan
Image caption Companies whose operations may affect the environment must seek ministry approval for share sales

China's Sinochem plans to raise up to 35bn yuan ($5.5bn, £3.5bn) from a share sale in Shanghai, which would make it the biggest in China this year.

The firm would use the money to fund an oil-refining project in Quanzhou, it said in a statement to China's ministry of environment.

Sinochem is the fourth largest energy company in China.

China's largest hydroelectric dam builder, Sinohydro, raised 13.5bn yuan in a share sale last month.

Analysts said Sinochem's sale may struggle to wet investors' appetites.

"The market may not get very excited about a listing," said Ao Chao Wang at UOB Kay Hian in Shanghai.

"Additionally the market demand is not that strong at the moment."

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