US private equity firm
Blackstone Group on Friday (30 October) launched its new Shanghai-based investment unit and signed a preliminary deal with its first local investor, The Wall Street Journal reports.

The new yuan-denominated company,
Blackstone Zhonghua Development Investment Fund, will be focusing on investments in Shanghai and neighboring areas. The fund is open to invest in any industry, but its primary targets are alternative energy, environment, and medical-related firms, the news service said.

At the signing ceremony with its first investor, government-backed
Lujiazui Financial Development Co, Blackstone China chairman Antony Leung reportedly said a fund raising activity is in the works for the new fund. Terms of the Lujiazui deal weren't revealed.

Blackstone Zhonghua aims to raise 5 billion yuan ($732.5 million).

Blackstone is part of the first batch of foreign companies looking to invest in China via yuan-denominated fund partnerships with local firms. Other similar deals have been made by
First Eastern Investment Group and
Prax Capital Management Co over the past months.