China’s biggest company, the state-owned oil giant PetroChina, has become the largest in the world and the first to exceed $1trillion (£500bn) in value after its shares almost trebled on their first day of trading in Shanghai.
The milestone, which saw PetroChina surpass Exxon Mobil, the US oil company, adds another notch to the belt of corporate China as it flexes its muscles on the global stage.
The newly floated oil giant PetroChina has lost a third of a trillion dollars in nominal value in just three weeks, plummeting to a fresh low yesterday as angst gripped the Shanghai stock market.
The benchmark CSI 300 index of Chinese stocks has dropped 18pc in November, the worst one-month fall in more than a decade. The bourse has tumbled 22pc since peaking in mid-October after a wild speculative boom that saw prices triple in a year – much like the final phase of Japan’s Nikkei frenzy in 1989. It now qualifies as an official “bear market”.
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But US investor Warren Buffett earlier cashed in his minority holding for a 600pc gain of $3.5bn (£1.7bn), warning that the Shanghai boom had become unstable. The Shanghai market still remains expensive with an average price to earnings ratio of 55.
that market is gonna blow up like a rotten wonton on a hot summer day.
It’s gonna be messy
Maurice Strong … just in time also ? 🙂
PetroChina oil stock going down.
Estevan Saskatchewan sweet light gravity oil stock going up. CPG.UN(tsx)
PC’s crude is ugly stuff that takes a lot to refine to fuel grades…Alberta crude and Athabasca extracted crude is sweet and near fuel grade at extraction…with China crude off line for production cost increases Alberta oil will sell big.
G’head close down oil sands development for some earth druid sacrificial offering…G’head, I dare you greentard rabbits to even suggest it…first one to yap off gets a slapped back to the political wilderness.
What most people who think that big oil is responsible for high prices don’t realize is that the big North American oil companies now make up less than 15% of the market. The big state controlled oil companies like those owned by China, Brazil, Russia and Saudi Arabia own the rest. Where as the private oil companies have it in their best interest to pump the oil as fast as possible and maximize profit. The state owned companies are more interested in maximizing the price per barrel and will cut back on production when the price falls. That combined with much higher demand from the Gulf States, China and India means that high oil prices are here to stay.
So the large Chinese refineries are spewing CO2 into the atmosphere!! Naughty Naughty!! Well folks, let’s see now, last night, I turned my porch light off an hour early, tonight I’ll walk to the 7-11 to check my 649 instead of firing up my F-150.
Fact is we’ve been freezing our butts off this week. Sure happy to have a natural gas furnace!! It’s so cold, I hear Stephan Dion will have to knit “Kyoto” a winter sweater. Tsk a Tsk.
Don’t worry y’all.
I hear China is working on developing coal-fired automobiles.
There are already coal-fired cars on the market, with more on the way. All of the electric, plug-in hybrid and hydrogen cars that rely on the existing power grid are in large part ‘coal-fired’ already.
Stock speculation is nothing new but like other posters here I think the Chinese will do it bigger and dumber than anyone else before them.
to think Garth Turner had a buy recommendation coming on that stock.
There’s a reason why commodities and metals prices are going down this last few weeks. I think this is the reason right here. Immanent implosion of the Chicoms.
Messy indeed.
So now that PetroChina has been welcomed to the World Oil Big Leagues, what’s next?
…PetroChina and PetroCanada.
Hmmm, why does something sound close?
Ever notice how Warren was talking up China before he cashed out a bunch of equity?
My sister and brother in law lived in biejing for nine years.Infrequently saw blue sky and sunshine.Polution from coal use.Internet content filtered to aleviate state criticism,and that aint chicken youre eating, thats dog,snake or????
Believe they are going nuclear,cleaning up for olympics.
The hype of PetroChina having a market cap of $1 trillion was never completely accurate. Only 2% of the company was floated, raising slightly over $9 Billion US. That would have given the company a market cap of about $450 billion. The price jumped once the shares started trading, leading to the initial headline, but as the article notes, they have since fallen back.
However, most of the company’s shares are locked up by the government, and are not available for trade. Most intelligent analysts think the more realistic estimate of a firm’s market cap is the share price times the number of shares potentially available for trade. The Chinese government is never going to give up a controlling stake in the company, and thus, only a small fraction of the total shares are in the “float”. So, the story was a little misleading from the get-go.
So where is GREENPEACE and SIERRA CLUB and the other eco-wackos to oppose this why are they not objecting to the china embassy? why is GREENPEACE not going out there to oppose the drilling?