BlackRock has received approval to start doing business with its fund fund in China, as the world’s largest asset manager increases its presence in the country’s rapidly expanding investment industry.
The Chinese Securities Regulatory Commission approved the request for a fully owned fund company in BlackRock, the U.S. group said Friday.
While the move sought to continue the activity of large U.S. banks and asset managers after the wave fully integrated they themselves benefit from a large set of savings that enter and save the Chinese financial system, as they have historically been directed to money and goods.
Higher foreign participation driven by Chinese government reforms related to the liberalization of the financial system. These have gained momentum over the past year despite tightening geopolitical relations between the US and China.
“China is taking important steps to open up its financial markets,” said Larry Fink, president and CEO of BlackRock. “We are honored to be in a position where more Chinese investors can build portfolios that can access financial markets and serve them for life.”
Permission comes from BlackRock and comes a few weeks later separate approval It aims to manage wealth with China Construction Bank, through which it will design investment products that will be distributed through local banks.
The admissions reflect the diverse trajectories of foreign groups entering China, and “BlackRock positions its knowledge of its products and services and investments to expand to all customer segments across China,” the company said. The Chinese asset management market was valued at Rmb121.6tn ($ 19 billion) last year, according to Boston Consulting Group and China Everbright Bank.
Since then April 2020, foreign companies have been allowed to own investment fund businesses in China, acting through a joint venture with a local partner compared to the previous requirement. JPMorgan is in the process buying a joint venture partner In the business of Chinese mutual societies.
Greater foreign ownership is allowed, including the mainland securities businesses, which contract debt and equity in the sectors. Last week, JPMorgan has been asked to take full control it was similar to the joint venture of its securities Goldman Sachs in December.
The country’s wealth management industry, whose assets are dominated by the world’s state-owned banking sector, has been subject to reforms to promote foreign involvement while China seeks to develop a savings industry.
Goldman Sachs announced it last month Collaborate with ICBC, One of China’s largest banks with 680 million retail customers, to launch a majority-owned wealth management project Amundi, France’s asset manager, last year he started a collaboration With the Bank of China.