HONG KONG/NEW YORK, June 18 (Reuters) - Blackstone Group LP is in talks with the Shanghai city government to set up a wholly owned China subsidiary as part of its preparations to launch a local-currency private equity fund, sources said on Thursday.
The move came as the Shanghai government announced last week that Shanghai would soon allow international private equity firms to incorporate locally in China's financial hub so that they could launch local currency yuan-denominated funds to invest in Chinese companies. (Reporting by George Chen and Megan Davies; Editing by Chris Lewis)