China Petroleum & Chemical Corp., or Sinopec Corp., and China Petrochemical Corp., or Sinopec Group, on July 9 entered into an agreement to form a new joint venture, Sinopec Capital Co. Ltd., according to a July 10 release.
Sinopec Group will provide 51% of the joint venture's total registered capital of 10 billion Chinese yuan, and Sinopec Corp. will provide the remaining 49% no later than Dec. 31, 2020.
Sinopec Capital will focus on strategic emerging industries, including new energy, new material, energy conservation and environmental protection, and intelligence manufacturing in relation to the industry chain. Sinopec Corp. will have the right of first refusal regarding investment projects that are related to the company's principal business.
As of July 9, US$1 was equivalent to 6.61 Chinese yuan.