Warburg Pincus buys stake in mobile phone maker

Warburg Pincus, a US-based private equity fund, is to acquire a stake in Beijing Tianyu, one of the nation's major mobile phone makers, in a move that marks a step up in the US group's investment in China.

The acquisition is being closely watched by both domestic and overseas investors and manufacturers in the industry, which is largely dominated by foreign brands.

A large infusion of capital could help Tianyu to compete with foreign businesses in a sector that demands huge investment in design and development.