SHANGHAI/BEIJING (CHINA) – Global asset manager BlackRock has secured regulatory approval to set up a mutual fund unit in China. This comes as Beijing opens its 17.7 trillion yuan (1.9 trillion pounds) financial sector for foreign firms.
Touted to be the world’s biggest asset manager, BlackRock got the go ahead on Aug. 21 to form a wholly-owned subsidiary in Shanghai, according to the China Securities Regulatory Commission (CSRC).
The unit is expected to expand the firm’s presence in the country’s fast-growing asset market. It already has a mutual fund venture with Bank of China and is slated to establish a wealth management venture with Temasek and China Construction Bank.
As part of a deal with the US in January, China opened up its mammoth financial sector to foreign entities.
When Beijing scrapped foreign ownership caps in the sector, BlackRock and Neuberger Berman applied for permits to establish mutual fund units on April 1. Fidelity International too has applied and many others are slated to follow suit.
US-based Vanguard Group has announced the closure of its Hong Kong and Japan operations and the shifting of its Asia headquarters to Shanghai.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.
