UBS says that it is discussing a possible joint venture with, and investment in, the Bank of China.

The Swiss banking giant says that it’s in talks with Bank of China with a view to forming a “mutually beneficial partnership” that would include “commercial co-operation in certain areas of investment banking” which have yet to be agreed.

It adds there’s a possibility that UBS could invest approximately US$500 million to become a strategic investor in BOC. “The talks continue and further details are confidential,” UBS said in a release.