China's biggest lender 'to float'

Foreign investors have been buying into China's biggest lender

China's biggest lender, Industrial and Commercial Bank of China (ICBC), plans to float in Hong Kong later this year, Chinese state media has reported.

It is thought the stock market launch would one be one of the world's biggest, raising up to $12bn (£6.5bn).

China's banking market is due to be opened up to international competition from December.

Many of the state-owned banks are looking to foreign investors to help them prepare for the challenge.

Foreign interest

The news of ICBC's intentions comes after the Bank of China raised $9.7bn recently from its massively-oversubscribed flotation in Hong Kong.

ICBC is in the middle of a restructuring, which is expected to be completed by the end of June.

Goldman Sachs, Allianz and American Express bought a 10% stake in ICBC in August last year.

The state-owned bank reported operating profits of $11.2bn in 2005.