Blackstone Group (NYSE:BX) announced today that it purchased a 20 percent stake in Chinese chemical producer China National BlueStar Group, which could cost upwards of $600 million. The landmark deal is one of China's largest involving one of the most instrumental investment groups in the world.

Many hedge funds and private equity firms having been looking to move into Chinese companies to take advantage of the country's spectacular growth. However, investment in government-controlled entities such as BlueStar can prove to be difficult without strong connections.

Blackstone's connections with the Chinese run deep since its government took a 9.4 percent stake in the investment group. Many analysts see this deal - one of the largest in China - as the beginning of a potentially lucrative long-term relationship with China. This makes BX a stock worth watching!

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