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(China Daily)
Updated: 2007-12-04 10:23

Sinopec Shanghai Petrochemical Co Ltd and Sinopec Yizheng Chemical Fibre Co Ltd, both subsidiaries of oil giant Sinopec, announced today they have suspended trading in order to enact stock reform procedures.

The suspension was a response to a new proposal of share-splitting reform raised by shareholders of non-circulation shares under the operations procedure of split-share reform in accordance with regulations stipulated by the State Council and the China Securities Regulatory Commission.

The proposal came one year after two companies' share reform plan was vetoed on October 9 last year. The reform of its stock hasn't continued smoothly since the veto.

Sinopec raised reform plans for the two companies in October last year, both vetoed by the shareholders as the two companies are expected to undergo privatization.