Jia understands that a company can theoretically raise its profitability by borrowing from banks instead of using money that ultimately belongs to shareholders. But, he says, Sinopec prefers not to borrow. "If we plan a wonderful project and the timing is good to borrow from the market by issuing bonds or other instruments, we will do so in order to increase the wealth of our investors," he says.
by JEAN-FRANÇOIS TREMBLAY, C&EN HONG KONG |
July 26, 2004