Sinopec shares increased by more than 10% on 5th

HONG Kong stocks continued to skyrocket in Thursday, including PetroChina (00857). HK), Sinopec (00386. HK), Mobile (00941. HK), Tencent (00700. HK), China Construction Bank (00939. HK) and many other large blue-chip in the plate hit a new year.　　Among them, Sinopec was the most prominent, as of yesterday's close, Sinopec has increased by 10.6% per cent by 5th. October 12, BofA Merrill Lynch set the target price of Sinopec from HK $8 to HK $10, and maintained a "buy" investment rating, and then began to rise in price, to close yesterday, has reached HK $7.46, more than the October 7 closing close of HK $6.74 rose 10.68%, It hit a new two-year high of HK $7.57.　　In addition, the transaction value of the shares further enlarged, yesterday, when Sinopec in Hong Kong market turnover amounted to HK $1.852 billion.　　BofA Merrill Lynch said in a report released on 12th that the improvement of the petrochemical product cycle Outlook and the continued growth of the natural gas business have all boosted Sinopec's earnings forecast for 2011 to 2012, with a forecast increase of 12% to 34%, and a corresponding increase in the target price from HK $8 to HK $10, with the investment rating maintaining "buy". BofA Merrill is optimistic about Sinopec's chemicals business next year.　　The Bank of America Merrill Lynch believes that in the past few years, Sinopec's chemical business has grown rapidly, is now the Asia-Pacific region's top-ranked chemical producer, coupled with the improvement of petrochemical products prospects, the business is expected to see a substantial increase in profitability. In addition, the recent rise in the renminbi exchange rate will help to hedge the current foreign crude oil prices, which is good for Sinopec. Analysts at BofA Merrill Lynch said the appreciation of the renminbi and changes in the mainland policy would benefit Sinopec's refining operations.