China fund's Blackstone stake above 10 pct -media

SHANGHAI, Oct 18 (Reuters) - China Investment Corp, the country's sovereign wealth fund, has raised its stake in private equity firm Blackstone Group (BX.N) above 10 percent, Chinese official media reported on Saturday.

The official Shanghai Securities News also said on Saturday that CIC confirmed reports it planned to boost its stake to 12.5 percent from its original 9.9 percent holding by buying shares on the open market.

Blackstone said in a regulatory filing on Thursday that the parties had agreed to raise the ownership limit to 12.5 percent from 9.9 percent, and a source familiar with the situation told Reuters that CIC intended to proceed with boosting its stake to 12.5 percent via buying on the open market.

The official China Securities Journal and the China Daily, citing a source close to the deal, reported on Saturday that CIC's stake had already been raised above 10 percent.

CIC bought its original stake in Blackstone just before the company's $31-a-share initial public offering in June 2007, but has seen the value of its investment sink as a year-long crisis practically shut down the credit markets.

Blackstone's shares ended Friday trade at $10.88, up 16 percent on the day while the major U.S. stock indexes declined. (Reporting by Edmund Klamann; Editing by Clarence Fernandez)