HSBC seen to hold talks over investment by China

LONDON (Reuters) - HSBC Holdings (HSBA.L: Quote, Profile, Research)(0005.HK: Quote, Profile, Research) has held talks with China's main sovereign investment fund over a potential investment in Europe's biggest bank, the Sunday Telegraph reported, without citing sources.

The paper said HSBC Chairman Stephen Green had met officials from the China Investment Corporation (CIC) several times in recent months, and that the talks are thought to have included the possibility of CIC buying shares in the open market.

HSBC is vying the become the first foreign company to list on a mainland Chinese bourse and has no need to raise additional capital, the paper said.

"We constantly aim to broaden our geographically diverse shareholder base including in a number of strategically important markets for HSBC," a spokesman said.

"It is not appropriate to comment on whether particular meetings occurred," he added.

(Reporting by Mark Potter; Editing by Richard Hubbard)