Fosun International Ltd, China's largest non-state conglomerate, is currently holding talks to pick up stake in Russian investment firm Renaissance Capital, Reuters reported.

The discussion over acquiring a stake in Renaissance Capital, which is owned by Russian billionaire Mikhail Prokhorov's Onexim Group, has been going on for couple months now. The value of the transaction is still reportedly under negotiation.

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Russian business daily Vedomosti who first reported about the deal earlier this month claimed Fosun would initially pick up a minority stake, with the option to increase the stake later if the firm's business continues to expand.

Renaissance Capital's main strength consists of investing in lucrative assets in emerging markets. The African continent happens to be one of its core markets, with branches operating in many prominent African countries including Kenya and Nigeria.

The news about the deal comes at a time when the Fosun Group is shifting its investment focus from developed markets to emerging markets. The Chinese conglomerate is especially focused on developing markets like India, Russia, and Brazil, as the valuation of assets in these markets are immensely low.

"Fosun has roughly completed the investment layout in developed countries, and now it needs to turn to emerging markets," its billionaire co-founder and chairman Guo Guangchang said at a post-earnings media briefing on Wednesday.  

Fosun Group on Wednesday announced a healthy 21.4 percent rise in net profit led mainly by good returns on a host of recently acquired foreign assets. This year, the company splashed billions to acquire many lucrative assets across the sector. Some of the recently acquired assets include Indian drug maker Gland Pharma, French resorts operator Club Med and English football club Wolverhampton Wanderers.

TagsFosun Group Holding, Fosun Group, Renaissance Capital, china