NEW YORK ( TheStreet) -- China Investment Corp.'s $200 billion sovereign-wealth fund has selected Morgan Stanley ( MS) and Blackstone Group ( BX) to oversee hundreds of millions of dollars in new private-fund investments, the Wall Street Journal reports, citing people familiar with the matter said.

The fund has finalized an allocation of $500 million to Blackstone's fund-of-funds unit, and has earmarked additional money to be overseen by Morgan Stanley's asset-management unit, the people said, the Journal reports.

CIC has been in talks about allocating billions more dollars to hedge funds, including directly to hedge funds, in coming months. Representatives for CIC, Blackstone and Morgan Stanley declined to comment for the newspaper.

Since 2007, the China fund has spent about $10 billion combined to acquire stakes in Blackstone and Morgan Stanley, according to the Journal.

-- Reported by Joseph Woelfel in New York.