Xiamen International Bank, China's first joint venture bank, is considering a restructuring and initial public offering in 2008 to raise funds for rapid expansion, sources close to the situation said on Monday.

Xiamen International Bank (XIB), established in 1985, has asked investment banks, including Goldman Sachs Gaohua Securities Co. and China International Capital Corp. (CICC), partly owned by Morgan Stanley , for initial IPO proposals, the sources said.

The bank, based in the southern Chinese city of Xiamen, across from Taiwan, has also contacted at least two local brokerages, China's top broker CITIC Securities Co. and Haitong Securities Co., for potential plans, the sources said.

"Everything is in a very preliminary stage at the moment but one thing for sure is that the bank really wants to transform itself into a Chinese joint stock bank from a Sino-foreign joint venture," said one of the sources, who declined to be identified.

XIB, Goldman Sachs Gaohua and Haitong Securities declined to comment, while CICC and CITIC Securities could not immediately be reached for comment.

Overseas shareholders of XIB include Japan's Shinsei Bank Ltd. , with 10 percent, Asian Development Bank, with 10 percent, and U.S.-based Sino Finance Group Co. Ltd., with 5 percent, according to XIB's Web site, www.xib.com.cn.

Min Xin Holdings Ltd. , a Chinese property developer backed by the local government of Fujian and owner of a 36.75 percent stake of XIB, is also classified by regulators as an overseas investor because it is a Hong Kong-listed entity.

As a joint venture bank, XIB is not allowed to offer local-currency yuan services to Chinese residents.

XIB must reduce its total foreign ownership to no more than 25 percent percent if it wants to become a Chinese lender, according to current banking rules, and Min Xin is expected to transfer part of its XIB stake to a Chinese investor, the sources said.

XIB has not decided on the potential size of its IPO but has been advised by several investment banks to raise between 4 billion and 5 billion yuan ($520-650 million) domestically, based on its current financial position, the sources said. ($1 = 7.67 Yuan)