(Beijing) -- Xinhuanet, the news portal run by the state-run Xinhua News Agency, has hired China International Capital Corp. as underwriter for an initial public offering in Shanghai this year, Caixin learned from a source close to the situation.

According to the source, "the investment bank department of CIC is now helping Xinhuanet to prepare the documents and to steadily push forward with an IPO." But the source said they were concerned that "since the business of Xinhuanet now relies heavily on its contracts with the government, business growth is unlikely to see a big jump."