December 22, 2014

"The Chinese government sets gasoline prices at levels designed to provide reasonable profits for state-run oil companies. It gives military support if these companies drill in hotspots such as the South China Sea. And it helps seal deals, such as a recent $400 billion Sino-Russian natural gas contract.

Investors in energy stocks often point to strong government support as reason enough to hold any or all of China's oil giants through their listed stocks PetroChina Company Limited (ADR) (PTR), Sinopec Shanghai Petrochemical Co. (ADR) (SHI) and CNOOC Ltd (ADR) (CEO)."

Read more:

http://investorplace.com/2014/12/chinese-oil-stocks-risks/#.VJi6bUsAAA