Postal Savings Bank of China is in talks with potential investors about sale of a minority stake prior to a possible listing in early 2016.
The share sale is expected to fetch as much as $25bn, matching Alibaba’s record $25bn offering last year, reports The Financial Times.
The potential investors include an affiliate of Alibaba, US private equity groups as well as Asian sovereign wealth funds.
Morgan Stanley has been hired to line up potential investors before any listings.
"It is a true and pure savings bank. Its ability to collect deposits is very, very strong and because it doesn’t have a huge loan book, the overall risk is very, very low.
"But to turn it into a new retail bank may be way too difficult," said by head of a Chinese investment fund that is mulling purchase of a stake.