Blackstone considers Chinese chemical co.

As part of its renewed interest in China, Blackstone Group is considering investing US$400 million in a 20-40% stake of National BlueStar Group, a state-owned chemical company. The Wall Street Journal reported the deal, noting that it would be small by global standards but large in China where deals are usually below US$100 million. The deal would be the first since Beijing decided to invest US$3 billion in Blackstone just before its initial public offering in June, an investment seen as a push by Beijing to gain greater understanding of private equity. China National BlueStar Group, a subsidiary of China National Chemical Corp, or Chem China, operates three publicly traded subsidiaries.