China National Chemical Engineering Co. Ltd. Surges to a Record High Amidst a Surge in the Epoxy Propylene Concept

China National Chemical Engineering Co. Ltd. (ticker 601117.SS) closed the trading day on January 20, 2026 at 8.79 CNY, its highest price in 52 weeks, and posted a 0.80 CNY (9.1 %) jump to a 24.78 billion‑CNY trading volume. The rally lifted the company’s market cap to 536.78 billion CNY, a modest rise over the 52‑week high of 525.8 billion CNY.

Drivers of the Upswing

  1. Epoxy Propylene (EP) Market Momentum
  • The EP concept, a foundational raw material for polyurethane, solvents, and other specialty chemicals, has been a hot topic for A‑share investors. The benchmark price of EP rose to 8,500 CNY/ton on January 20, up 9.91 % from the beginning of the month.
  • The Ministry of Finance’s announcement on January 8 that the export‑tax‑refund policy for primary shaped polyether would be withdrawn from April 1, 2026 has prompted firms to front‑load orders, tightening supply and elevating prices.
  • Key EP consumers—such as Oriental Shenghong and Lianhong Guren—have reported higher output, further boosting demand.
  1. Conceptual Synergy and Sectoral Rally
  • The EP concept has become a “conceptual board” that attracts capital flows. In the early session, the EP sector surged 3.83 %, with several constituent stocks—Meibang Technology, Hongqiang Co., and Red Beauty—registering limit‑up moves.
  • China National Chemical Engineering, a major EPC player in the petrochemical and power plant sectors, benefited from the sectoral optimism. Its shares rose 3 % in the morning session and finished 3 % higher at the close.
  1. Fundamental Strength and Investor Confidence
  • The company’s price‑earnings ratio of 8.66 remains attractive relative to peers in the construction‑engineering space, supporting valuation‑driven buying.
  • Analyst coverage from institutions such as Huatai Securities highlighted the company’s position in the upstream chemical market and its potential to capture upside as demand for chemical plants and infrastructure projects rebounds.

Market Context

The Xinhua 500 index slipped 0.37 % on January 20, but individual names such as China National Chemical Engineering, Sanke Tree, and Luxi Chemical were among the top gainers, indicating a selective rally within the broader market. In the broader context of China’s Belt‑and‑Road Initiative, the government’s record 213.5 billion USD investment in 2025 in overseas infrastructure projects underscores a continued focus on large‑scale construction and energy‑related ventures, a core strength of China National Chemical Engineering.

Outlook

With the chemical industry on the cusp of an “upturn” phase—thanks to the dual turning points of supply‑side capacity and inventory cycles—analysts predict a sustained upward trajectory for the company. Its involvement in petrochemical, pharmaceutical, and power‑plant construction positions it favorably to capture the projected rebound in demand for chemical and energy infrastructure.

In summary, China National Chemical Engineering’s record‑high close is a confluence of a rallying EP concept, favorable policy changes, sectoral momentum, and the company’s solid fundamentals, all set against the backdrop of China’s expansive infrastructure ambitions.