Hengli Petrochemical Shares Drop After Unit Lands on U.S. Sanctions List
By Tracy Qu
Shares of China's Hengli Petrochemical slid Monday after one of its units was added to a U.S. sanctions list for allegedly buying Iranian crude and petroleum products.
That came after the Trump administration on Friday announced a crackdown on so-called Chinese "teapot refineries"--a colloquial term for small, private refiners.
In a statement, the U.S. Treasury's Office of Foreign Assets Control said that purchases of Iranian crude oil by Chinese independent oil refineries provide a vital source of revenue to Tehran. It alleged that Hengli Petrochemical (Dalian) Refinery--a subsidiary of Hengli Petrochmical--had purchased billions of dollars' worth of Iranian petroleum.
Hengli Petrochemical denied the claims in an exchange filing on Sunday, saying it has never engaged in Iran-linked oil trading. It added that all of the suppliers it works with have clarified that the origin of the crude oil they supply doesn't fall within the scope of U.S. sanctions.
Shares of Hengli Petrochemical ended 10% lower on Monday after falling by the maximum daily limit. That Shanghai Composite Index finished 0.2% higher.
In addition to sanctioning the Hengli unit, the Treasury office is targeting approximately 40 shipping firms and vessels it said provide a financial lifeline to Iran.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
April 27, 2026 03:57 ET (07:57 GMT)
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