UPDATE 2-Pitango eyes $100-200 mln China fund -sources

* Pitango to get China partner for venture fund

* Fund size expected to be $100-$200 mln

* Focus on China's start-up tech companies (Adds comment from Pitango)

By George Chen and Tova Cohen

HONG KONG/TEL AVIV, July 22 (Reuters) - Israel's venture capital giant Pitango plans to team up with a Chinese partner to launch a $100-$200 million fund with investment focus on China's start-up companies, sources said on Wednesday.

Pitango Venture Capital, run by Nechemia Peres, son of Israeli President Shimon Peres, is in talks with Shenzhen Capital Group Co Ltd, to raise a China-focused investment fund, said the sources with direct knowledge of the matter. Shenzhen Capital is China's top venture capital firm.

"Pitango is a big name in Israel but still little-known in China so now it should be the right time for Pitango to team up with a right partner to expand its investments in China like what its rivals have already done," said one source.

No agreement has been inked between the two parties, said the sources, who declined to be identified as the negotiations are confidential. Pitango hopes to mainly invest in China's high technology-related sectors through the new fund, they said.

Shenzhen Capital declined to comment.

An official at Pitango said the firm has had close strategic relations with Shenzhen Capital for several years.

"For a long time now we have been examining cooperation and projects in China," the official said. "A year ago we made our first joint investment in Jinko Solar and we continue to work towards finding joint activities and strategic investments in China."

Pitango, one of Israel's largest venture capital firms, manages funds in excess of $1.3 billion in committed capital from international investors.

Earlier this month, Wilson Lee, president of Shenzhen Capital, based in southern Chinese boomtown of Shenzhen, bordering Hong Kong, told Reuters the firm aims to double its funds under management to more than 20 billion yuan ($2.48 billion) in three years. [ID:nHKG144091]

CHINESE FRIENDS

This week, a Pitango delegation led by Peres is travelling in China to meet Chinese government officials and business partners including senior representatives from Shenzhen Capital, said the sources.

An Israeli industry source confirmed a delegation led by Peres was in China this week.

The local Shenzhen government, which is the de facto boss of Shenzhen Capital, has shown strong support to Pitango's China fund plan, which may also need approvals from financial regulators in Beijing, said the sources.

Pitango's smaller rival Infinity Equity manages more than $600 million through three funds, two of which are in China.

Infinity-I China, its most recent China fund, manages $300 million. It was founded by IDB Holding (IDBH.TA) subsidiary Clal Industries (CII.TA) of Israel, state-owned China Development Bank and China Singapore Suzhou Industrial Park Ventures Co, a firm backed by both the Singaporean and Chinese governments. (Editing by Rupert Winchester)