Galaxy joins a growing list of domestic brokerages going public to fund expansion amid rapid growth of the country's capital markets.

"At the earliest, the application will be in the second half," said the source.

Galaxy required a US$1.2 billion bailout from the central government to get back on its feet after a four-year stock market slump that bankrupted most brokerages.

Changjiang Securities, which recently severed ties with BNP Paribas, said last month it would achieve a domestic backdoor listing through a merger with a loss-making petrochemical unit of oil giant Sinopec Corp.

Many brokerages moved back into the black in 2006 on surging stock trade commissions, but they still cannot apply for initial public offerings in the near future as rules require listing applicants to have recorded profits for at least the previous three years.

The profitability requirements make backdoor listing a faster alternative for many brokerages.

The benchmark Shanghai index gained 130 percent last year, making it the world's best performing major index.

After the restructuring, Central Huijin, the central bank's investment arm, and the Ministry of Finance are the main shareholders in Galaxy's parent holding company.

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