China's national pension fund is speaking with CITIC Capital Holdings to set up a private equity fund worth as much as five billion yuan ($730 million), AFP reports.

The National Social Security Fund has not finalized how much it will invest in the fund, the China Business News reported, citing an unnamed source. It did not specify which other investors might be involved.

CITIC Capital, a unit of China's state-owned financial conglomerate CITIC Group, will manage the fund, the report said.

A spokeswoman with CITIC Capital declined to comment when contacted by AFP while officials with the fund were not immediately available for comment.