HSBC and Chinese sovereign wealth fund prepare to make £1 billion bet on British companies
- Britain and China have been trying to create closer financial ties
- Fund will invest in UK companies with ties to China
The sovereign wealth fund China Investment Corporation and HSBC are reportedly in talks to raise up to £1 billion (US$1.27 billion) to invest in British companies.
The bank said that CIC was in discussions to create the fund focused on companies with ties to China, but did not confirm the amount. The Financial Times, citing sources, reported on Thursday that the fund could raise as much as £1 billion.
HSBC, CIC and the British private equity firm Charterhouse Capital Partners are in “exclusive discussions to create a fund to invest in high-quality and growing UK companies with development opportunities in China”, the bank said in a statement.
The discussions come as the UK and China have been looking to forge closer financial ties, particularly as Britain prepares to exit the European Union and strike its own trade deals around the world.
In February, British Prime Minister Theresa May announced deals worth £9.3 billion to create more than 2,500 jobs in the UK following a three-day trade summit in Beijing.
Foreign direct investment into China from the UK has jumped 176 per cent in the first 10 months of this year, according to the most recent data from the Ministry of Commerce released on Thursday.