China, the world's second largest energy consumer, is expected to set up a state energy fund and energy development bank as part of efforts to speed up resources exploration, the official Shanghai Securities News reported.

The State Energy Bureau under the State Council has approved China Industry Investment Fund Research Center, an affiliate of Beijing Institute of Technology, to undertake feasibility studies for setting up the two new entities, it said.

Cui Xinsheng, director of the Research Center, was quoted as saying that the proposed state energy fund will manage all upstream resources and that petroleum companies could bid for resources based on a floor price set by the government.

State-owned, private and foreign entities may all invest in the proposed fund and development bank, Cui said.

Diversified ownership of the fund will help offset political concerns, especially in cases involving overseas acquisitions, he was quoted as saying.

Cui did not provide details on the timetable or how the two entities will be operated.