BlackRock has been approved to start its own mutual fund business in China because the world’s largest asset management company is expanding its influence in China’s rapidly expanding investment industry.
The American group said on Friday that the China Securities Regulatory Commission approved the application of a fund company wholly-owned by BlackRock.
This move is sought by major U.S. banks and asset management companies More fully integrated Enter China’s financial system and use its huge savings pool, which has traditionally been used for cash and property.
More foreign participation Stimulated by the Chinese government’s reforms related to the liberalization of the financial system. Despite the geopolitical tensions between China and the United States over the past year, these momentum has increased.
“China is taking major steps to open up its financial markets,” said Larry Fink, chairman and chief executive officer of BlackRock. “We are honored to be able to support more Chinese investors to enter the financial market and build a portfolio that can serve them throughout their lives.”
Approved a few weeks after BlackRock was approved Individual approval Design investment products for cooperation with wealth management companies of China Construction Bank and distribute them through local banks.
The company stated that these approvals reflect multiple routes for foreign groups to enter China and “enable BlackRock to extend the breadth of its products and services and investment insights to all customer bases in China.” According to data from the Boston Consulting Group and China Everbright Bank, the value of China’s asset management market was RMB 12.16 billion (US$19 trillion) last year.
since April 2020, Allowing foreign companies to fully own mutual fund business in China, which changes the previous requirement of operating through joint ventures with local partners.JPMorgan Chase is Acquired its joint venture partner In its Chinese mutual fund business.
In areas such as mainland securities business involving underwriting of debt and equity, it is also allowed to increase foreign ownership.Last week, JPMorgan Chase Apply for full control Its securities joint venture, after a similar move Goldman Sachs in December.
As China seeks to develop the savings industry, China’s wealth management industry has also been reformed to encourage foreign investment. The state-owned banking industry is the world’s largest state-owned banking industry by assets.
Goldman Sachs announced last month Cooperation with Industrial and Commercial Bank of ChinaIt is one of the largest banks in China, with 680 million retail customers, and will launch a majority-owned wealth management company. Last year, French asset management company Amundi Initiated cooperation With Bank of China.