BlackRock has applied for license to manage and sell mutual funds in the world’s second largest economy, according to the China Securities Regulatory Commission.
Authorities in Beijing removed restrictions on fully foreign-owned fund management companies on Wednesday, at the same time eliminated the cap on foreign ownership of securities business.
‘We are pleased to have taken this next step in pursing our onshore presence in China, a market where we expect to see rapid growth in financial assets,’ BlackRock Asia Pacific chair Geraldine Buckingham told Citywire Asia.
BlackRock’s move comes on the back of CEO Larry Fink’s letter to shareholders in March, as the world’s largest asset manager attempts to carve out its ambitions on the market.
He noted: ‘China’s $14tn asset management industry is the third-largest in the world, and as the Chinese market opens to foreign asset managers, our global reach and whole-portfolio approach will help you become the leading foreign asset manager in China.’
The $7tn manager registered its wholly foreign-owned enterprise, BlackRock Investment Management (Shanghai), with the Asset Management Association of China in December 2017.
In December 2019, the manager linked up with Temasek Holdings and China Construction Bank to set up a wealth management joint venture in the Mainland.
‘We will continue to invest in the market and our local investment expertise, in order to help clients navigate this complex investment environment to meet their financial goals,’ Buckingham added.