PetroChina To Sell 4bn Shares

China's largest oil company PetroChina is planning to sell up to four billion shares through an initial public offering in Shanghai to fund its expansion.

PetroChina, one of the largest mainland companies which is already listed in Hong Kong, said it would use the proceeds to buy overseas petroleum and gas resources, fund exploration and development, and construct refinery and pipeline projects.

"Oil prices are on the rise and PetroChina must have felt that the time is ripe for it to issue A-shares," said Duncan Chan, an analyst at China Everbright Research Ltd.

The Hong Kong-listed shares of PetroChina were up 7.35 percent at HK$11.98.