Chinese authorities are considering a plan to strip China Investment Corp. (CIC) of all its domestic banking stakes, which will hopefully help diversify its investment portfolio, said a China Daily report.

Banking shares held by CIC reportedly totaled $70 billion when the fund was established in 2007, including large stakes in Bank of China and the Industrial and Commercial Bank of China. Central Huijin, a wholly owned subsidiary of CIC, currently holds the banking stakes.

The move is expected to free CIC from certain restrictions when it invests overseas and help diversify investment risks. CIC invests mostly in banking and non-financial business such as energy, as it is now considered a bank holding company instead of a financial holding company.