A stake in a Hong Kong-based commodities trading firm was recently bought by China's sovereign wealth fund.

The reports suggest that a 15% stake has been acquired by China Investment Corp, the country's $200 billion fund in Noble Group in return for $850m.

China has become the world's largest consumer of raw materials including oil and steel due to its fast economic growth.  

Noble's shares were bought by China's fund at an 8% discount to Noble's last traded share price of 2.30 Singapore dollars.

Via this sale, Noble, which has investments in Australian coal, soybean crushing plants and sugar and ethanol mills in Brazil, among others, will be bale to raise US$850 million by selling a 12.9 per cent stake to China Investment Corporation (CIC) in a private placement.

Noble, based in the Hong Kong will place out 438 million new shares and 135 million shares owned by its CEO Richard Elman to CIC at S$2.11 each.