UPDATE 1-Tesco to open 18 hypermarkets in China before Feb

* To set up a jv to develop shopping malls in China

* Will be 50:50 owned by group of leading Asian investors

(Adds details)

LONDON, Nov 12 (Reuters) - Tesco (TSCO.L), Britain's largest retailer, said it agreed to set up a joint venture to develop shopping malls in China, as part of its strategy of building a substantial business in the country.

Tesco will open 18 new hypermarkets in China before February 2010, in addition to the 65 hypermarkets and six small stores it already has in the country.

Half of the joint venture will be owned by a syndicate of leading Asian investors, including HSBC Nan Fung China Real Estate Fund, Singapore's Metro Holdings Ltd and Hong Kong's Nan Fung Group, Tesco said on Thursday.

Asia's retailers have held up relatively well in the financial crisis compared with U.S. and European peers. [ID:nSP492307] (Reporting by Julie Crust; editing by Sharon Lindores)