The state-controlled Bank of China has acquired a 30% stake in Heritage Fund Management, the Swiss asset manager that has said its 788 China hedge fund lost 64.7% of its value in the first six months of the year.

Jacques Mechelany, who founded of Heritage Fund Management two years ago with the help of Swiss private bank Banque Heritage, said he had sold 30% of his 100% stake in the company to the Chinese bank's UK subsidiary. He said: "The plan, subject to regulatory authorisation, is for Bank of China to increase its stake in the company to 70% by year-end and for it to take on the Bank of China brand."