The two firms have entered a non-binding agreement with one of the country's largest banks to take a majority stake in the new unit.
Singapore sovereign wealth fund Temasek and investment manager BlackRock are in talks to start an asset management business in China along with China Construction Bank, «Bloomberg» reported, citing an unnamed source.
Under the agreement, which is subject to regulatory approval, the two firms will develop and distribute investment products for the Chinese market, the report (behind paywall) said.
Big Ambitions
China has sped up liberalization of its financial sector in recent years, and foreign firms are eyeing a piece of the $44-trillion pie. Regulatory changes now allow foreign firms to hold 51 percent of a wealth-management joint venture with a bank.
With the Asia region increasingly accounting for an ever-growing share of global assets, BlackRock chief executive Larry Fink said the firm wants to be one of China's top asset managers.
