China's Sinochem has welcomed banks to pitch for a Hong Kong listing of its key oil assets that could raise about $2bn, according to people familiar with the matter. The move would be an important step in easing Beijing's grip on Asia's biggest energy market, which is already being squeezed by low prices and rising U.S. crude imports. China has been encouraging of state-owned enterprises to raise private capital. In October, it was reported that the chemical company had hired BOC International, CLSA and Morgan Stanley to do similar work and it is likely that they will play a role in the IPO.
China's Sinochem has welcomed banks to pitch for a Hong Kong listing of its key oil assets that could raise about $2bn, according to people familiar with the matter. The state-owned energy unit's IPO will most likely include its oil trading, oil refining, storage and logistics, and distribution and retail businesses. China has been encouraging of state-owned enterprises to raise private capital. In October, it was reported that the chemical company had hired BOC International, CLSA and Morgan Stanley to do similar work and it is likely that they will play a role in the IPO.