PetroChina created history by becoming the first company in world to cross trillion dollar mark in market capitalization. PetroChina's share were listed today in Shanghai stock exchange after it came up with an IPO last month. PetroChina's shares on listing today were trading at triple the initial public offer price. At these prices the valuations certainly look expensive but considering the kind of bull run that Chinese stock market is undergoing the stock can have some upside from these level also. The relative valuation of the Chinese Oil & Gas major can be compared by the fact that the second largest company by market capitalization, Exxon Mobil Corp., is only half of the PetroChina's current market cap when PetroChina is not even in world's top 50 companies by earnings. PetroChina's valuation can only be explained by the future outlook of the company and kind of growth Chinese economy is witnessing.
Nov 5, 2007
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