The Saudi Public Investment Fund, one of the world's largest sovereign wealth funds, plans to establish an office in China's mainland to eye new investment opportunities.

The PIF, which manages nearly USD600 billion in assets, is expanding its international investments after opening an office in Hong Kong last year, Shanghai Securities News reported today, citing Chairman Yasir Al-Rumayyan talking at a summit held in the special administrative region recently.

This year, the sovereign wealth fund of the country that is diversifying its revenues away from oil has invested in the Chinese market several times. In June, the PIF signed a joint-venture agreement with Human Horizons, the Chinese owner of new energy vehicle brand HiPhi, to cooperate on research and development, as well as car production and sales.

EWTP Arabia Capital, a venture capital company backed by Chinese e-commerce giant Alibaba Group Holding, announced on Dec. 8 that Jada, a fund of funds company owned by the PIF, invested in its USD1 billion Phase II fund. Jada focuses on investment opportunities in small and medium-sized enterprises. It is a cornerstone investor in EWTP Arabia Capital's Fund I as well as the main limited partner in its second fund.

China is attracting more capital from the Middle East. On Dec. 10, the Qatar Investment Authority, a sovereign wealth fund of the Arab country, purchased USD200 million of new shares issued by Kingdee International Software Group, a Chinese enterprise software company.

Interestingly, in September, Mubadala Investments, one of the sovereign wealth funds of the United Arab Emirates, opened an office in Beijing.

The PIF had over SAR2.23 trillion (USD594.5 billion) in assets under management as of Dec. 31, last year, per its annual report released in August.