Sinopec's 1.77% stake was transferred to PetroChina free of charge

On November 10, Sinopec announced that Sinopec signed a free transfer agreement with China National Petroleum Group, intending to transfer 2.
137 billion A shares of Sinopec held by Sinopec Group to China National Petroleum Group through the approval of the State-owned Assets Supervision and Administration Commission of the State Council
.
Based on the total share capital on the date of the announcement, the shares transferred this time account for approximately 1.
77%
of the total share capital of Sinopec.

According to the announcement, the transfer of shares is to deepen the strategic cooperation between Sinopec and China National Petroleum Group and optimize Sinopec's shareholding structure
.
The transfer does not involve a tender offer and will not result in a change
in Sinopec's controlling shareholders or actual controllers.

It is reported that on October 28 this year, PetroChina issued an announcement that CNPC intends to transfer about 1.
83 billion A shares (accounting for 1% of the company's total share capital) held by PetroChina to Sinopec through gratuitous transfer, which has been approved
by the State-owned Assets Supervision and Administration Commission of the State Council.
The reason for the transfer is to strengthen the strategic cooperation between CNPC and Sinopec and optimize the shareholding structure
of PetroChina.

Industry experts said that it is not uncommon for central enterprises to transfer some shares without compensation, in addition to the above reasons, sometimes due to the need for industrial chain adjustment and other reasons, it is conducive to the optimal allocation
of state-owned capital resources.