Pequot Capital, the $7bn (€5.5bn) US hedge fund under investigation by regulators for insider trading, is planning to take a minority stake in China's Huishang Bank through a joint venture with a Singapore-based buyout house.

Pangaea Capital Management, a Singaporean private equity fund part-owned by Pequot Capital, has met with Huishang's board with the intention of buying a 5% holding in the bank, Reuters reports, citing industry sources.