Citigroup released a report that the rating of 00603.HK was downgraded from "buy" to "sell" because of its bleak profit growth prospects for 2015-16, expensive valuation and no cash dividend. CNPC's 2015-16 earnings per share was lowered by 45%, and its target price was lowered from HK $1.60 to HK $0.80, reflecting the expected decline in natural gas sales in the mainland. Due to weak new housing starts in third-tier cities, residential connection fees are expected to fall by 20% a year in 2016-17; coupled with a drop in crude oil prices, profits from its upstream Canadian oil field business are expected to decline.

In addition, the Group hopes that the retail price increase of natural gas in Qinghai will be approved by the end of the year, but due to the relatively weak economy, the bank believes that the increase in retail price of natural gas will be postponed until next year.