Blackrock and Neuberger Berman have applied to China's securities regulator for a license to operate wholly owned mutual fund businesses in the country.
The China Securities Regulatory Commission accepted applications from the two U.S. asset management giants yesterday, according to the regulator's website.
The pair are the first international institutions to do so, following Wednesday's scrapping of foreign ownership restrictions in the mutual fund and brokerage industries.
Despite the Covid-19 pandemic wreaking havoc on the economy, China is going ahead with the liberalization of its financial sector, planned as part of the «phase one» trade deal with the U.S. and in line with the country’s previous commitment to open up the financial sector.
$14 Trillion Market
Blackrock has long desired to access the large pool of investors in China and grow its business in the world's third-largest asset management market, worth $14 trillion.
Chairman and CEO Larry Fink saying in a letter to shareholders four days ago that he «continue[s] to firmly believe China will be one of the biggest opportunities for BlackRock over the long term, both for asset managers and investors, despite the uncertainty and decoupling of global systems we’re seeing today.»
