Chinese government-controlled businesses are currently in talks about shelling out a total of $5 billion to $10 billion worth of initial public offering of Aramco, sources with knowledge of the issue disclosed.
According to the people who asked not to be identified because the information is private, the Beijing-based Silk Road Fund is among the parties involved in discussions to buy stock in the offering.
Some other Chinese funds or undertakings that are owned and managed by the state may also join, the people said.
Through his "One Belt, One Road" plan, President Xi Jinping has tried to expand the political clout of China and restore ancient trade routes. An investment in Aramco would strengthen ties with Saudi Arabia and provide a way for China to take advantage of rising oil prices.
State-run oil company Sinopec Group and sovereign financial fund China Investment Corp. have also sat down to talk about the billion-dollar venture in recent months, sources bared.
Commitments have not been finalized, and the investment lineup and the amounts each company puts in will ultimately depend on the Chinese government, the people said.
The Silk Road Fund was founded with an initial capital of $40 billion in 2014. According to its website, it was later added to another 100 billion yuan ($14 billion) of funds.
Big Chinese investments would help Saudi Aramco make the stock purchase a success after Western money managers pushed back on the valuation of the company earlier.
Saudi Crown Prince Mohammed Bin Salman has long insisted that the state oil company is worth $2 trillion, although Bloomberg News has reported that he is prepared to reduce his expectations to between $1.6 trillion and $1.8 trillion.
The Silk Road Fund and CIC officials, as well as Sinopec Group and its key identified group, did not respond to requests for comments.
China's State-owned Property Supervision and Administration Commission, which manages the largest government corporations, and the Ministry of Finance have not replied to faxed inquiries.
Last week, the head of Russia's wealth fund stressed that Aramco's initial public bid is a "unique opportunity." Russian businessmen are "willing to participate" in the investment, Chief Executive Officer Kirill Dmitriev told Bloomberg TV.
The fund's investors, identified as the Russian Direct Investment Fund, are contemplating investing in the transaction, a RDIF spokesperson said in response to requests from Bloomberg. According to the official, no definitive decision was made and investment sums were not set.
