* Longyuan Power doubles IPO target, expects strong demand
* Longyuan plans to sell 2.1 billion shares - source (Adds details and background)
By Kennix Chim
HONG KONG, Nov 9 (Reuters) - China Longyuan Power Group Corp Ltd., Asia's largest wind power generator, has nearly doubled its fundraising target, hoping to raise about $1.3 billion in a Hong Kong IPO, sources said on Monday, banking on strong demand from institutional and retail investors.
Longyuan is a major subsidiary of China Guodian Corporation, one of China's five largest power generation groups.
The company, which started pre-marketing for its IPO on Monday, plans to sell 2.1 billion shares, or 30 percent of its enlarged share capital, one of the sources said.
Longyuan initially planned to raise around $700 million in a Hong Kong IPO, sources told Reuters in July, but the company has boosted its expectations because of strong demand.
Morgan Stanley (MS.N) and UBS UBSN.VX are handling the deal.
Longyuan is the largest wind power generator in China and the fifth-largest in the world. It had a 24 percent share of China's wind power market in terms of total installed capacity as of the end of 2008, according a UBS report, citing wind power research company BTM Consult.
The company had 3,032 MW of consolidated wind power generating capacity at the end of the third quarter 2009.
UBS estimated Longyuan's 2009 earnings would jump 144 percent to 895 million yuan ($131.1 million), excluding non-recurring items such as an impairment loss in 2008, and a further 100 percent jump to 1.8 billion yuan in 2010.
The growth is mainly becasue of capacity expansion in the wind power segment and lower coal costs.
China's renewable energy sector has grown remarkably in recent years, as Beijing pushes for sustainable development, but overcapacity is already threatening polysilicon and wind power equipment industries as a result of blind expansion. (Reporting by Kennix Chim; Editing by Chris Lewis)