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Freshfields Bruckhaus Deringer is advising Chinese oil company Sinochem Energy Co. Ltd. on a planned Hong Kong initial public offering that aims to raise up to $2 billion.

The oil and petroleum unit of state-owned Sinochem Group plans to expand production capacity of its Quanzhou refinery, according to a filing with the Hong Kong Stock Exchange.

Beijing-based Sinochem is set to merge with state-owned peer China National Chemical Corp., or ChemChina, which last year acquired Swiss pesticide firm Syngenta for $43 billion, and create an industrial chemicals producer worth $120 billion. China has consolidated state-owned enterprises in several sectors, hoping to create stronger national champions.

Freshfields Hong Kong partner Teresa Ko and Beijing partners Richard Wang and Yan Chen are leading a team advising Sinochem. Ko and Wang also recently advised state-owned China Tower Corp. Ltd., the world’s largest telecoms tower operator, on a $6.9 billion IPO in Hong Kong, one of the largest listings in the city by a Chinese state-owned company in recent years.

Tian Yuan Law Firm is serving as Chinese counsel to Sinochem.

Clifford Chance is acting for Morgan Stanley, CLSA and BOC International as joint sponsors. The firm also acted for the joint sponsors in China Tower’s IPO.

Fangda Partners is advising the banks on Chinese law.

Hong Kong has seen an uptick in IPOs recently, thanks in large part to the Hong Kong Stock Exchange’s new listing rules in April, permitting companies like Chinese smartphone maker Xiaomi to list in Hong Kong with dual-class shares.

The new listing rules also allow pre-revenue biotech companies to float. Sidley Austin and Paul Hastings this week advised Chinese biotech firm Ascletis Pharma Inc. on the first such listing in Hong Kong, which raised $400 million.

Another rule change allows companies already listed overseas to have secondary share offerings in Hong Kong. Skadden, Arps, Slate, Meagher & Flom and Davis Polk & Wardwell acted on Nasdaq-listed Chinese cancer drug maker BeiGene Ltd.’s $903 million secondary listing in Hong Kong under the new rules.