Global bank HSBC and the China Investment Corporation are in talks to create a £1bn fund which will be used to invest in British companies that have links with China.

Private equity firm Charterhouse Capital Partners is in talks with both parties to manage the fund.

HSBC said in a statement: “China Investment Corporation, HSBC and 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.”

According to the Financial Times, the fund could be in the region of £1bn.

It reported that the fund will be structured in a similar way to partnerships struck by CIC elsewhere in the world, such as the $5bn US fund set up with Goldman Sachs last year to invest in high-tech manufacturing and infrastructure and a €150m technology initiative with the Ireland Strategic Investment Fund.