UPDATE 1-China Longyuan Power ups IPO plan to $1.3 bln-sources

* 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.