HONG KONG - The elder son of former Chinese premier Li Peng will reportedly be appointed transport minister as part of China's government reshuffle.

Mr Li Xiaopeng , who is Shanxi provincial governor, was named the new minister to replace Mr Yang Chuantong at a closed-door meeting of top Communist Party leaders early this month at Beidaihe, the South China Morning Post reported on Monday, citing two sources. The annual seaside retreat sets the tone for China's major policies.

The newspaper, citing a Beijing-based source, said Mr Li had told his subordinates in Shanxi that he was leaving for Beijing to work "in a ministry".

Another source confirmed that Mr Lou Yangsheng, the deputy party chief of Shanxi who is widely seen as one of President Xi Jinping's allies, will become the new provincial governor.

The newspaper had earlier reported that Mr Li was tipped to become the new Communist Party boss at the regulator of the country's state-owned enterprises.

Mr Li Peng was premier from 1987 to 1998 and was understood to have a strong power base in the state sector. His daughter Li Xiaolin has spent more than two decades serving in senior executive positions in state-owned power corporations