Sinopec's greater exposure to downstream has seen it outperform since the oil price downturn. Sinopec Corp successfully de-leveraged its balance sheet through a focus on cost reduction and portfolio management. Sinopec is now in a better position to address underlying strategic challenges and increased spending in 2017 indicates that the retrenchment of the last few years is in the past. Rationalisation will be increasingly balanced by new business development that builds materiality in growth parts of the business. Action is needed to addresses the increasing maturity of the domestic oil business and an overly diverse international portfolio.