The Bohai Fund, one of China's nascent private equity (PE) entities focusing on industrial investment, will pay US$135 million for a 10% stake in Chengdu City Commercial Bank, the Wall Street Journal reported. The deal, which is set to be formally announced at a signing ceremony on Thursday, represents the first time the Bohai Fund has ventured out of its home city of Tianjin in northeastern China. The move is also significant as it sees domestic PE money flowing into the banking sector, an area in which foreign PE players have made little progress. As a renminbi-denominated fund, the Bohai Fund is treated as a local entity and therefore does not need the level of regulatory approval that foreigners – who typically invest in US dollars – require when looking to make an investment. Earlier this year, US PE firm Carlyle was barred from buying into a Chongqing City Commercial Bank.