Hangzhou City Commercial Bank plans to raise about 5 bln yuan from an initial public offering (IPO) on the domestic stock market next month, International Finance News reported, citing sources.

The bank has already selected China International Capital Corp, in which Morgan Stanley holds a 34.3 pct stake, as its main underwriter for the IPO, the report said.

State media earlier reported that China's securities regulator will review Hangzhou City Commercial Bank's IPO plans at the end of this month at the earliest.

Commonwealth Bank of Australia is the largest shareholder in the city bank, with a 19.99 pct stake, while the Asian Development Bank holds 4.99 pct.

As of end-2006, the Hangzhou bank had total assets of over 56 bln yuan.