China’s $1.6 Trillion Fund Rekindles Ties With US Money Managers

China’s $1.57 trillion sovereign wealth fund - long one of the biggest backers of private equity firms in the world - is considering new allocations to US money managers just months after reducing its exposure to the world’s biggest economy.

As tensions between the superpowers thaw, China Investment Corp. has held talks in recent weeks with firms including Blackstone Inc. and TPG Inc., according to people familiar with the matter. Some of the discussions were paused after the US launched its attacks on Iran last month, engulfing one of China’s trading partners in war, the people said.