BEIJING, Dec 1 (Reuters) - An investment arm of Beijing’s city government is holding talks with shareholders of Phoenix Tree Holdings Ltd, known as Danke, on raising new funds to help turn around the cash-strapped Chinese rental firm, three sources said on Tuesday. Danke did not immediately respond to a Reuters email seeking comment. Beijing E-town International Investment and Development Co, a private equity firm controlled by the Beijing municipal government involved in the talks, did not respond to Reuters telephone calls seeking comment outside of business hours. (Reporting by Zhang Yan, Cheng Leng and Ryan Woo. Editing by Jane Merriman)