As Beijing speeds up the opening of the $3.5 trillion mutual fund market, BlackRock has become the first foreign asset management to be allowed to start a wholly-owned onshore mutual fund operation in China.
The China Securities Regulatory Commission (CSRC) granted BlackRock’s Chinese fund management unit license to begin operations on Friday.
In a statement, BlackRock Chairman and Chief Executive Officer Larry Fink stated, “China is taking major moves toward opening up its financial markets.”
“We look forward to sharing our worldwide investment knowledge with Chinese investors and providing more distinctive investment alternatives.”
BlackRock made the announcement a month after receiving a license in China for a majority-owned wealth management firm. In addition, the US fund behemoth owns a minority position in a joint venture with Bank of China in the form of a mutual fund.
According to BlackRock, the regulatory licenses allow it to expand the range of its products and services, as well as investment insights, to all customer categories in China.
In a statement, Susan Chan, BlackRock’s president of Asia, stated, “Rapid economic expansion and wealth accumulation in the world’s second largest economy have fueled growth of the local asset management business.”