― Among a sample of chemical
producers, we view ChemChina,
Bluestar, Sinochem International
and Wanhua Chemical as
being in a leading position
in terms of their indicative
issuer credit quality,
due to their outstanding
competitive positions
or potential government
support. ― In our opinion,
Hengli Group and Rongsheng
have stronger competitive
positions than other privately-owned
enterprises (POEs), due
to their large-scale refining
projects and integration
in upstream and downstream
sectors. However, they
have higher financial
leverage. ― We typically
view chemicals as a relatively
high risk industry, because
of its highly competitive
and cyclical nature. Most
players in the sector are small in scale.