HSBC and China Investment Corp are in talks to raise a ￡1bn that will help the country’s huge sovereign-wealth fund to invest in British companies with Chinese links.

The fund, which will be managed by London-based private equity firm Charterhouse Capital, will be formally announced next year, according to people familiar with the plans. The three parties are in “exclusive talks”, HSBC said in a statement, and are still negotiating how much capital each will contribute.

The proposed 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.