Update | Sinopec and Tencent consider collaboration

Fu Chengyu, the chairman of China Petrochemical – parent of listed China Petroleum & Chemical (Sinopec) – has met internet giant Tencent Holdings president Martin Lau Chi-ping to discuss potential co-operation between the two firms.

The meeting took place at China Petrochemical’s headquarters in Beijing, said a statement posted on the company’s website last Friday.

Sinopec is in the process of selecting potential strategic and financial investors to buy up to 30 per cent of its fuel distribution unit, Sinopec Sales, which may be separately listed in a stock market in the future.

Spokespeople at Sinopec and Tencent declined to comment on reports suggesting Tencent was one of more than 20 potential investors in Sinopec Sales.

An analyst said the potential co-operation might be in payment – the topping up of fuel and convenience stores payment cards and virtual payment cards, or online adverting.

“Other areas include the cross-selling of car financing and insurance services between the two companies,” he said.