Sinopec's false financial report case, investors' compensation registration starts, may break record
Quick Look
- The Investor Protection Center has begun to accept registration of investor claims for Sinopec's false financial statements.
- The source of the case is that Dingyue Development acquired the land in Jinghua City at a high price, which resulted in Sinopec's false expenses of 7.5 billion yuan.
- The period of bona fide buyers and holders lasted for more than three years.
AI-generated summary
Why It Matters
The Investor Protection Center accepted the registration of investor claims for Sinopec's false financial statements. The source of the case, Dingyue Development, bid for land in Jinghua City at a higher price than the market price, resulting in Sinopec's false expenses of 7.5 billion yuan.
[Reporter Chen Yongji/Report from Taipei] The Investor Protection Center yesterday began to accept investor compensation registrations in response to the case of Sinopec (1314)'s false financial report. The case originated from Sinopec's Dingyue Development bidding for land in Jinghua City at a higher than market price, causing losses to Sinopec. Therefore, the Insurance Center will make civil claims against the Sinopec board members who approved the financial report at the time, as well as the company's financial personnel and accountants who prepared the financial report.
Since the bona fide buyers and bona fide holders of Sinopec Corp. were accepted this time, the period lasted for more than three years. In addition, Sinopec Corp. has a large share capital and a large number of shareholders. It is expected that the number of investors participating in the claim this time may break the record.
Please read on...
Lin Junhong, general manager of the Insurance Center, said that although the prosecutor's indictment has not been made public this time, the Insurance Center has obtained relevant information and has also found many accounting scholars to study it together. He believes that Sinopec's financial report is false and untrue, and that Dingyue Development paid a sky-high price of 37.2 billion yuan. The land in Jinghua City was obtained, but according to the appraisal results, the land was only worth less than 30 billion yuan. Sinopec’s financial reporting expenses were falsely reported by 7.5 billion yuan. According to the indictment, some of the funds even flowed into the pocket of Shen Qingjing, the boss of Weiking Group. Therefore, the prosecutor charged Shen Qingjing with breach of trust.
Lin Junhong pointed out that during the period from the fact of the land transaction to the disclosure of the matter, investors who believed in Sinopec's financial report but did not sell their shares, or who suffered losses during the period, can register with the Insurance Center for compensation.
The so-called bona fide buyer in this case refers to a bona fide buyer who bought Sinopec shares from March 17, 2022 to May 26, 2025, and still suffered damages after deducting the profits gained from selling Sinopec shares during the period.
As for bona fide holders, they refer to investors who were entrusted to sell (including transactions) Sinopec shares from March 3, 2022 to March 16, 2022, and still held Sinopec shares on March 16, 2022, but only sold the shares after May 27, 2025, resulting in losses.
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What to Watch
AI outlook — possibilities, not facts
Sinopec will face large-scale civil litigation
Likely · Within months
Sinopec share price may fall in the short term
Possible · Within weeks
Open Questions
- When will the prosecutor's indictment be made public?
- How many investors will specifically participate in the claim?
- What is the estimated amount of compensation?
