BEIJING - A J.P. Morgan & Co. official said the company is negotiating to set up a fund to invest directly in Chinese enterprises.

Weijian Shan, vice president of corporate finance for J.P. Morgan, said the China fund would target energy, telecommunications, and the food industry.

The official was quoted by the official Xinhua News Agency as saying J.P. Morgan had held talks with China's central bank, some securities companies, and the state science-technology commission. The report did not elaborate.

It said the bank planned to open representative offices in Beijing and Shanghai by the end of the year.

The official said J.P. Morgan's activities in China would include helping the government and enterprises float bonds on the international capital market, acting as a consultant to large capital projects, and investing in infrastructure.

China raised $400 million in U.S. capital markets from March to October. J.P. Morgan analysts predict the figure could double or triple over the next 18 months.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.