Three major banks have entered into talks that could see them make investments in the China Cinda Asset Management body, it has emerged today (9 March).
UBS, Citic Capital and Standard Chartered are currently involved in discussions with the Asian company - which was set up to help clean up the debt seen in the Chinese banking system - over a possible deal, the Financial Times reports.
Should an agreement be reached with the organisations - a move that would represent the first such contract between overseas investors and a Chinese asset management corporation - Cinda could then be eligible to be listed on the stock market.
Sources close to the discussions told the news source that while the size of this investment is not yet known, it is thought the deal should be finalised at some point over the next seven days or so.
However, Chinese magazine Caixin has reported the deal will result in the financiers paying some $1.6 billion for a seven or eight per cent stake in Cinda.
By Tony Aynsley