US private equity firm TPG said it plans to raise a second 5bn yuan ($735.5m) fund denominated in Chinese currency-denominated funds, the latest efforts by a foreign firm to enter China's tightly regulated market.

San Francisco-based TPG said in a statement Tuesday it would launch a fund in the southwestern city of Chongqing called TPG Western China Growth Partners I. The fund "will focus on making on-shore investments to support the growth and expansion of Chinese companies to and from Western China," the statement said.