BEIJING, August 30 (InfoChina) – Sinopec Shanghai Petrochemical (NYSE: SHI) announced on August 30 that its general meeting of shareholders will have the additional right of deciding whether to “change the company’s corporate form”.

The adjusted articles of association of the company are interpreted by the market as a move to pave way for its parent firm Sinopec’s (NYSE: SNP) buyout plan, in which the Shanghai company and Yizheng Chemical Fiber are the focus of market speculations.

       With the new right, the general meeting of shareholders can decide whether to change the company’s status from a listed company limited by shares to a company simply with limited liability. With a controlling 55.56% stake in Shanghai Petrochemical, Sinopec should have a large say on the shareholders’ meeting.

       Xinhua-run China Securities Journal estimates that Sinopec may adopt the “Zhenhai mode” to buy back the remainder listed subsidiaries. That is: through stock swaps or with cash.