The U.S. fund house's expansion drive into China continues with the approval of its fund management company license, which allows it to offer domestic Chinese investors onshore investment products and solutions.
BlackRock has won approval from the China Securities Regulatory Commission (CSRC) to start operations for its wholly owned mutual fund unit in the country, the firm announced on Friday.
«Rapid economic development and wealth accumulation in the world’s second largest economy have propelled growth of the domestic asset management industry. We are eager to play our part in helping to make investing easier and more affordable so more Chinese citizens can experience the benefits of investing,» Susan Chan, BlackRock’s head of Asia, said in the statement.
Lucrative Market
Blackrock also has a fund joint venture with Bank of China and is in the process of setting up a wealth management joint venture with Singapore’s Temasek and China Construction Bank.
China's mutual fund industry, which was fully opened to direct foreign manager participation last year, is worth an estimated $3.34 trillion.
Foreign firms including Fidelity International, Neuberger Berman, Schroders, VanEck and AllianceBernstein Hong Kong have applied for a licence in the country, .while J.P. Morgan and Morgan Stanley are buying out their domestic joint-venture partners.
