British banking and financial services company HSBC Bank, a unit of HSBC Holdings, and sovereign wealth fund China Investment Corp (CIP) are planning to set up a fund for CIP to invest in companies in Britain that have business links with China.
The companies expect the fund to be worth 1 billion pounds ($1.2 billion).
The fund would be managed by London-based Charterhouse Capital Partners, which is in talks with China Investment Corp and HSBC.
CIC has set up similarly structured funds elsewhere in the world, including in the United States with financial services company Goldman Sachs and in Japan with Nomura Holdings.