HSBC, CIC in talks on 1 billion pounds fund to invest in Britain

LONDON (Reuters) - HSBC <HSBA.L> and China Investment Corp are in talks to create a fund for the Chinese sovereign wealth fund to invest in companies in Britain that have business links with China, HSBC said on Thursday.

The fund would be managed by London-based Charterhouse Capital Partners, which is in talks with CIC and HSBC, the British bank said.

The three "are in exclusive discussions to create a fund to invest in high-quality and growing UK companies with development opportunities in China," HSBC said.

The Financial Times earlier reported the fund could be worth 1 billion pounds (1 billion pounds).

CIC has set up similarly structured funds elsewhere in the world, including in the United States with Goldman Sachs <GS.N> and in Japan with Nomura.

(Reporting By Lawrence White. Editing by Jane Merriman)