Sinopec to sell $3.1bn in new shares

China Petroleum & Chemical (Sinopec; SNP.NYSE, 600028.SH, 0386.HKG) will sell US$3.1 billion (HK$24 billion) in new shares in Hong Kong with the proceeds to be used for “general corporate purposes,” Bloomberg reported. The company’s US-traded shares dropped 7.2% on Monday, the sharpest drop in nearly a year, in reaction to the news. Sinopec, Asia’s largest refiner, plans to sell 2.85 billion Hong Kong shares at US$1.09 (HK$8.45) each. Sinopec’s parent company is currently in negotiations to purchase US$1 billion of African assets from Afren (AFR.LON).