FT reported that an arm of the Chinese state has taken a secret stake in Rio Tinto. As per report the stake is bought in the past week by China Development Bank, which is backed by the Communist government in China.

As per report, the stake is believed to be less than 1%.

It is the first time a Chinese state backed group has taken a direct stake in a global miner and fuelling speculation that China may intervene in the bid battle.

In order to maintain growth, China needs to ensure it has ready access to resources such as iron ore. Armed with a huge trade surplus and vast foreign exchange reserves, China has in recent months been investing in resource rich countries in Africa, sparking a race for the world's resources. The country has earmarked up to USD 300 billion for this purpose.