Global private equity company Carlyle Group is in advanced talks with China Vanke Co Ltd, the country's largest developer, to buy stakes in nine of its shopping malls, two sources with direct knowledge of the matter told Reuters.

One of the sources said the deal was valued at between 6 billion and 7 billion yuan ($976 million to $1.14 billion), while the other said it could be worth up to 10 billion yuan. Neither was authorized to speak to the media.

A non-binding memorandum of understanding could be signed as early as Thursday, both sources said.

Carlyle and Vanke declined to comment.

The deal would give Carlyle access to China's commercial property market and enable Vanke to generate fast cash returns from commercial properties in a slumping residential market.

Reuters