Sinopec Shanghai Petrochemical (HKG:0338, SHA:600688) will consolidate Baling New Materials into its financial statements after approving amendments that enhance its control over the joint venture, according to a Thursday Hong Kong bourse filing.

Hong Kong-listed shares of the petrochemical company were up more than 4% in Friday's late morning trade.

Baling New Materials is currently 50%-owned by Sinopec Shanghai Petrochemical and Sinopec Hunan Petrochemical, with its results previously consolidated by Hunan Petrochemical.

While the equity split remains unchanged, revised governance terms will give Sinopec Shanghai Petrochemical greater voting and management control, allowing it to consolidate the venture as a subsidiary, the filing said.

The company said it will enter into a new joint venture agreement with Hunan Petrochemical by March 31, subject to approval at an extraordinary general meeting.