China's government has approved a plan to restructure state-run China Development Bank into a commercial lender, the 21st Century Business Herald reported, citing unidentified sources.

The policy bank will be restructured into a joint-stock lender in six months and will target an initial public offering.

After the restructuring, China Development will "mainly engage in medium- and long-term" business, said the Guangzhou-based newspaper.

It will also be allowed to conduct investment banking services, the report said.

China Development received a US$20 billion capital injection from China Investment Corp, the nation's US$200-billion wealth fund, at the end of last year.