Fang Fenglei, a former Goldman Sachs banker and co-founder of Hopu Investment Management, is raising up to $2 billion in a new fund, people familiar with the matter said, as one of China's best known bankers seeks to add to his riches.

The launch of another Hopu fund removes the mystery surrounding the next move of a politically connected and closely watched China financier who stepped out of the limelight three years ago.

The new fund also revives a potential conflict, as Fang's dual role as a non-executive chairman of Beijing Gaohua Securities, a unit of Goldman Sachs' China investment bank, and also as co-founder of Hopu, could put the rainmaker in the awkward position of competing with Goldman for deals.

Hopu surprised investors and rivals in 2010 when it suddenly wound down operations after raising and investing just one fund, which generated big returns.

Hopu Master Fund II, as the new fund is called, has received about $1 billion in commitments, Fang has told some investors without disclosing the source of funds, the people said.

Reuters