(Adds Railways Minister's comment in state media) By Lucy Hornby and Benjamin Kang Lim BEIJING, March 4 (Reuters) - China is likely to dismantle its sprawling, scandal-plagued Railways Ministry into operations and commercial arms that will be supervised by different agencies, two sources said, part of an overhaul of the bureaucracy as new leaders take charge in Beijing.

Thousands of delegates from across China meet this week to seal a power transfer to new leaders who have raised expectations with a deluge of propaganda during their first months running the Communist Party. Xi Jinping is due to replace Hu Jintao as China's president at the annual National People's Congress (NPC) in Beijing, a rubber-stamp parliament which meets on Tuesday. Li Keqiang will become premier, replacing Wen Jiabao.

What's happening around the world on Sunday: -- TOP STORIES -- + Kerry wraps up Egypt visit, heads for Saudi + China power transfer meeting opens in Beijing + Swiss voters to vote on curbing fat cats pay CAIRO: US Secretary of State John Kerry wraps up a two-day visit to Egypt, where he is pushing for an end to the country's violence-wracked political impasse, before heading to Riyadh where he is to meet his counterparts from the six member nations of the Gulf Cooperation Council (EGYPT-US-DIPLOMACY)

(Adds detail on companies, comment) BEIJING, Feb 6 (Reuters) - Chinese radio and television stations are to ban advertisements for expensive gifts such as watches, rare stamps and gold coins, the Xinhua state news agency said on Wednesday, as part of a push by the government to crack down on extravagance and waste. Such advertisements had "publicised incorrect values and helped create a bad social ethos", the State Administration of Radio, Film and Television (SARFT) said in a release, Xinhua said.