NEW YORK -- Beijing-backed CITIC Group is negotiating for a minority stake in Bear Stearns Cos. Inc. as investors worry about a sharp downturn in the U.S. investment bank's fixed-income and mortgage-related revenue, Forbes magazine reported Thursday.

The story in Forbes follows other reports about negotiations between Bear Stearns and the Chinese financial conglomerate. CITIC and Bear Stearns were not immediately available for comment.

A strategic partner would give Bear Stearns added liquidity as Wall Street investment banks weather a credit crunch and the prospect of sharply lower fixed-income revenue during the second half of the year. Turmoil at Bear Stearns would allow CITIC to get a stake at a big discount because Bear shares are down 26 percent this year.

Bear Stearns has been under fire because of the recent collapse of two hedge funds. And the company this week ousted co-President Warren Spector, holding him accountable for the company's hedge fund problems.

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Spector also had overseen Bear's push to expand in Europe and Asia, where the investment bank's revenue lags rivals.

In the United States, Bear Stearns is a leading underwriter of mortgage-backed bonds, but that business has soured as a rising wave of delinquencies spreads from risky subprime mortgages to loans involving borrowers with good credit.

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