A potential initial public offering could value Ferrari as high as $6.3 billion (40 billion yuan), according to some analysts. The deal would help Fiat to pay down its debt of 46 billion yuan and could boost the value of the Italian company's shares.

"Fiat hasn't made up its mind yet about the IPO, but it's certainly talking with banks about it," said one source who declined to be named because the discussions are private.

A Fiat spokesman declined to comment. The spokesman referred to comments by Fiat CEO Sergio Marchionne, who said last week that a Ferrari IPO "is not on the table" for the time being.

Hong Kong, the world's top destination for IPOs for the past two years, has become the venue of choice for global brands. Fashion house Prada S.p.A. raised nearly 16 billion yuan in June, becoming the first Italian company to go public in Hong Kong.

As with other luxury goods companies, Ferrari has seen a booming market for its sports cars in China. In January, the company said it expects China to become its second-largest market after the United States in a few years.

Chinese sales of ultraluxury brands such as Rolls Royce, Bentley and Ferrari are expected to double in 2011 from 2010, according to KGI Securities.

Sales should grow above 50 percent a year for the next three years because of an increase in millionaires in China and aggressive expansion by the car dealers, the brokerage added.

An IPO could value Ferrari at about 40 billion yuan, Italian bank UniCredit said in a July report.