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BlackRock acquires Greenlight and begins offering investment trusts in China

Black lock Co., Ltd.

BLK -0.40%

New York-based asset management company will begin selling funds to individual Chinese investors by the end of this year after receiving approval from Chinese regulators to start operations in China’s wholly owned investment trust business Paved the way.

Go Ahead is the latest in a series of steps China has taken to authorize US banks and investment firms such as JPMorgan Chase and Company and Goldman Sachs Group. Co., Ltd.

Following last year’s trade agreement between Washington and Beijing, access to the market has expanded.

BlackRock, the world’s largest money manager with $ 9 trillion in assets under management as of the end of March, has prioritized expanding its business in China. In August of last year, the China Securities Regulatory Commission approved the establishment of an investment trust business, and it is now permitted to start selling funds.

BlackRock Chairman and CEO Larry Fink said in a statement Friday, “We look forward to sharing our global investment expertise and providing Chinese investors with a more differentiated investment solution. I am. “

The US giant was one of the first foreign companies to reach this milestone. Other global investors who have established a wholly owned investment trust unit in China include Fidelity International and JP Morgan’s Asset Management Division.

BlackRock’s Shanghai-based unit, BlackRock Fund Management, has six months to launch its first fund for retail investors, a spokeswoman said. She added that the fund and future funds are likely to be sold through traditional Chinese mutual fund distribution channels, including banks and brokerage firms.

Rachel Lord, chairman of BlackRock and head of the Asia Pacific region, said China will benefit a broader asset management business as China opens its doors to foreign players on Thursday’s Investor Day. I told him to do it. According to the transcript, “it is very clear that China’s onshore opportunities to participate in this opening are enormous for the industry as a whole,” she said. “And we look forward to occupying a market-leading position in the next decade.”

Last month, BlackRock was approved by Chinese banking regulators to pursue a wealth management land-based joint venture with the state-owned China Construction Bank and Temasek’s unit of Singapore’s state-owned investment firm. Wealth management businesses in China also usually sell investment products to individuals.

In another recent approval, Chinese regulators in May agreed on a wealth management joint venture between Goldman Sachs and the Industrial and Commercial Bank of China. Co., Ltd.

Write to Quentin Webb (quentin.webb@wsj.com)

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BlackRock acquires Greenlight and begins offering investment trusts in China

Source link BlackRock acquires Greenlight and begins offering investment trusts in China

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