Shares of Sinopec Shanghai Petrochemical, a unit of China Petroleum & Chemical Corp (Sinopec), advanced 1.3% on Monday, closing at HK$1,135, as the company reported a sharp rebound in refining margins and operating profit.
China Petroleum & Chemical Corp posted a 19.3% year-over-year increase in net income for the first half of 2026, totaling 25.63 billion yuan. Refining margins expanded by more than 44% compared with the same period last year, while the refining segment’s operating profit surged by over 380%.
Sinopec Shanghai Petrochemical, listed separately in Hong Kong, returned to net profitability in the first half of 2026, supported by a recovery in refining margins and strategic shifts in crude oil sourcing. The company reduced its reliance on Middle Eastern suppliers and adjusted its product mix toward higher-margin items, executives said.
The gains came despite a broader decline in the Hong Kong market, where the Hang Seng index fell as much as 2% on Monday. Analysts attributed the outperformance to the company’s operational improvements and favorable refining market conditions.
