HSBC Holdings (00005) plans to set up China's sovereign fund, China Investment Corporation, to set up an investment fund for the UK.
The British Financial Times said that HSBC and China Investment have agreed to create a GBP 1 billion fund to help CIC invest in UK-related companies. The new fund will be managed by Charterhouse Capital in London and the fund will be formally announced next year.
The report quoted HSBC's statement that three parties are engaged in exclusive consultations and are still negotiating on the share of funding.
According to sources, CIC hopes to work with HSBC to make the approval process for companies investing in UK technology and industries smoother. IfTransaction implementation has significant symbolic significance for HSBC, and a representative can become a bridge between China and the Western financial system.