Anglo-Australian mining giants BHP Billiton and Rio Tinto could be the next target for China’s $200 billion investment fund. The China Investment Corporation is on the prowl for more Western company investments after buying a 10 per cent stake in US private equity giant, Blackstone.

A similar-sized stake in the two miners would give China some control over its much-needed supply of iron ore, copper and aluminium. Credit Suisse told clients: “It is certain that Rio and BHP, as well as CVRD in Brazil, would catch the attention of CIC.”

Yesterday, Australia’s opposition leader, Kevin Rudd, said a Labour government would welcome Chinese investment and even takeovers. “The Chinese are on a global investment push,” he said. “It is virtually impossible to kick through one capital and not run into a Chinese investment team.”

But falling copper prices yesterday brought BHP down 45p at £17.02 and Rio off 74p to £41.31.

Financial stocks were on the rise as investors took profits from miners. The bid battle for ABN Amro drew near a close, helping the FTSE 100 to close up 12.7 at 6,547.9.

ICI gained 4p to 654p as arbitrage traders said a takeover by Akzo Nobel at the 675p offer price looked certain to be agreed after Akzo’s key shareholder, Paulson, came out in favour of the deal. “The only risk is that someone like Dow Chemical bids for Akzo before the deal goes to a vote on November 5,” one said. Akzo’s €11 billion cash pile could even entice a bid by private equity. 3i, until yesterday hit by fears that its deal pipeline had dried up, soared 34p to £10.64 on rumours that it is one of at least two bidders for Abbot, the oil rig service group – up 63¾p to 355½p – which said it had received “proposals”. The rumoured price is 375p. Another much-rumoured contender in what could turn into a bid battle is Amec, up 24p at 790½p.

Hopes of consolidation in the oil service sector drove Hunting up 30p to 716p, Wellstream Holdings up 32½p to 825p and Petrofac up 2¼p to 475p. Wood Group, seen as another bid candidate, was unchanged at 408¾p.

Bodycote jumped another 9¼p to 281¼p after Sulzer, the Austrian group that bid six months ago, refused to rule out making another approach.

Bid talk also surrounded SSL International, up 27p to 466p, after Credit Suisse said a bidder for the Durex and Scholl footcare business - Johnson & Johnson is often cited – should pay 710p.

Tate & Lylewas the worst blue chip performer, down 16¼p at 435p amid talk that in the eyes of some key investors, its latest profit warning had thrown into doubt the position of chief executive Iain Ferguson.

Northern Rock was again the top riser, up 9.9p at 161.7p on growing hopes of a takeover. Barclays gained 15p to 655p as it looked increasingly like the loser in the ABN bid battle. There was also talk, largely dismissed, of a bid from Bank of America.

InterContinental Hotels lost 5p to £10.15 after a profit warning from US rival Marriott.

New York: Encouraging employment data failed to convince investors on Wall Street about the health of the American economy and the markets remained flat. The Dow Jones industrial average closed up 6.30 points at 13,974.30.

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