BEIJING, October 11 (InfoChina) – China investment group CITIC Securities lifts Sinopec’s A-share target price to 10 yuan per share, based on upward adjustment of earning per share (EPS) to 0.56 yuan for 2006 and 0.68 yuan for 2007, according to CITIC Securities’ analyst Yin Xiaodong’s latest article.

Sharp decline of international oil price recently eases cost pressures on Sinopec’s (NYSE:SNP) refining sector, and this factor is likely to help Sinopec’s refining sector go out of deficit by the end of 2006, Yin said.

       And according to the government’s current policy, CITIC Securities deems that the government won’t cut domestic product oil price in spite of falling crude oil price. However, the group said that it is a good time for the government to promote new product oil pricing system, which is accordant with previous market saying that China has drawn a new pricing system pegging on refining cost.