The private fund market in China is worth around $1.54 trillion.

UBS Group’s asset management arm is looking to launch its first Chinese private fund by the end of the year, according to Reuters.

The firm is looking to expand its operations within the 10 trillion yuan ($1.54 trillion) private fund market.

Reuters said that in addition to the new fund, which will either invest in stocks or bonds, UBS Asset Management is planning to launch funds in China to invest in alternative assets such as real estate.

The report added that the move was driven by a desire to capture the potential in China’s fund industry.

Although foreign investors have been allowed to launch mutual funds in China through minority-owned local ventures, the government has only recently given them full access to the private fund market, which targets institutions and wealth individuals.

This publication has contacted the firm and will update in due course.