Six investment banks are vying for places as bookrunners on the initial public offering of Baosteel, China's biggest steel maker, which local sources say could fetch up to $3bn (€2.3bn).

Citigroup, Credit Suisse, Goldman Sachs, HSBC, Merrill Lynch and Morgan Stanley have been named as possible underwriters for the listing, which may take place in Hong Kong or New York, banking sources said.