France-based Carrefour SA, the world's second largest-retailer by revenue, denied on Tuesday that it is considering the sale of its China business.

"It's a fake story," said a source close to Carrefour China. "Similar rumors circulated last year."

According to The Wall Street Journal, the French retail giant is exploring the sale of its operations in the Chinese mainland and Taiwan, as well as planning an initial public offering in Hong Kong that would raise about $1 billion.