The Industrial & Commercial Bank of China (ICBC) is preparing to set up a private banking unit but has ruled out a foreign partnership for the project, the China Securities Journal reported on Monday.

China's largest lender, unlike domestic peers such as Bank of China , has no plans to bring in a foreign partner for the private banking unit, the newspaper said, citing an unnamed industry source. "Instead, it is preparing for a real, domestic private bank," said the report.

Banks are racing to grab business managing money for wealthy clients in the world's fastest-growing major economy.

Global banks, including BNP Paribas and Citigroup, have set up private banking units that target clients with investable assets of $1 million or more. Local lenders are also gearing up to offer services to the wealthy.

About one-tenth of ICBC's 170 million personal banking clients are high-end customers, some of whom could be future targets for private banking services, the China Securities Journal added.