Warburg is looking to raise the fund to bolster its deal power in the country according to the Wall Street Journal, which cited people familiar with the situation.
It reportedly wants to close the new fund by December and will announce the fundraising in June according to the people.
The new China fund will invest alongside its recently closed global fund, which closed at £12bn back in November.
Warburg spokeswoman Sarah Gestetner declined to comment on the fund.
Four months ago the firm gathered $12bn for its twelfth fund, just six months after starting the fundraising process.
Commitments for Warburg Pincus Private Equity XII came from pension funds, sovereign wealth funds, insurance companies, endowments and wealthy individuals.
Last month, the firm appointed Julian Cheng and Frank Wei as co-heads of its Chinese operations after David Li left the firm to form his own company.
Warburg Pincus claims to be one of the first private equity players in China having invested over $6.5bn in more than 90 local businesses since 1994.
Copyright © 2016 AltAssets