Bei Jing Ri Bao Ke Hu Duan·2026-01-09 01:32Core Viewpoint - The restructuring of China Petroleum & Chemical Corporation (Sinopec) and China Aviation Oil Group (China Aviation Oil) is a strategic move aimed at optimizing state-owned assets and enhancing core competitiveness in the energy sector, which is expected to significantly reshape the domestic aviation fuel market and the entire energy supply chain [1][4]. Group 1: Restructuring Details - The restructuring was approved by the State Council and is seen as a continuation of the trend towards consolidating state-owned enterprises (SOEs) to improve efficiency and competitiveness [1][5]. - China Aviation Oil, established in 1990 and a key player in the aviation fuel supply chain, controls over 98% of the civil aviation fuel market in China, ensuring stable sales through its extensive network [2][3]. - The integration aims to create a seamless connection between Sinopec's refining capabilities and China Aviation Oil's distribution network, enhancing supply chain stability and reducing operational risks [3][6]. Group 2: Market Implications - The merger is expected to eliminate redundant competition and create synergies between refining and aviation fuel supply, thereby increasing market control and resilience against risks [3][4]. - Industry experts suggest that this restructuring signals a shift in SOE reform towards more specialized and strategic consolidations, focusing on enhancing competitiveness in key sectors [6][7]. - The trend indicates a move from simple asset aggregation to a more sophisticated integration aimed at improving innovation and efficiency within the industry [7][8].