A subsidiary of Qatar's sovereign wealth fund has bought a 22 per cent stake in Citic Capital Holdings, one of China's largest investment funds. 

The move partners one of the Middle East's most powerful investors with China's sovereign wealth fund, which partly owns CIC, forging ties between the two fast growing nations. The deal allows Qatar greater access to China in the alternative investment space.

Reports say the Middle Eastern country has applied for a US$5 billion quota under China's qualified foreign institutional investor scheme. 

Citic Capital is China's biggest alternative investment firm, mainly investing in private equity and real estate in China, Japan and the US. Previous investments include Harbin Pharmaceutical Group, Jilin Grain Group and China National Investment and Guaranty.