According to the Financial Times, Blackstone Group has reached an agreement with Great Eagle, one of Hong Kong’s biggest real estate developers, to build luxury apartments on the Chinese mainland.

Blackstone (NYSE: BX) agreed to provide financial support to a housing project developed by Great Eagle group in Dalian, Liaoning Province. The project will include more than 1,000 new apartments and an international luxury hotel with 400 guest rooms.

Dalian is an important trade and financial center in northeast China.

In its latest company report, the Great Eagle group invited investors to join the Dalian project as partners in a joint venture. Following the agreement with Blackstone, the project is expected to start in the autumn of this year.

The Chinese government and many analysts have been worried for some time that rocketing housing prices will result in an asset bubble.

China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.