China’s Sinochem Holdings Corp is considering selling its entire 37% stake in Italian tiremaker Pirelli & C SpA (PIRC.MI), Bloomberg News reported on Wednesday, citing people familiar with the matter.

The Chinese state-owned oil-to-chemicals group is in the early stages of reviewing its holding in Pirelli, the report said, adding that Sinochem may also sell a partial stake or divest over time on the market.

Milan-listed shares in Pirelli fell as much as 4.3% after the report was published, but reversed losses to trade 0.4% higher.