Blackrock has won approval to begin operating its wealth management business in China as it capitalises on the country’s fast-growing asset management market.
The joint venture, which is 50.1 per cent owned by Blackrock and includes China Construction Bank and Temasek, received approval from the China Banking and Insurance Regulatory Commission today.
BlackRock will “support China in building a sustainable ecosystem for investing,” chairman and chief executive Laurence Fink said in a statement.
“The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally.”
Blackrock is the latest company to move into mainland China and take advantage of the growing savings and maturing markets as the financial system is liberalised.
China opened up its huge financial sector last April as part of an interim Sino-US trade deal.
The chairman of the China Banking and Insurance Regulatory Commission, Guo Shuqing, said in March that Chinese regulators welcome more foreign entry into China’s financial sector, including the wealth management space.
Blackrock already owns a mutual fund venture with Bank of China and is setting up a wholly-owned mutual fund house in the state.
Last month the asset manager reported a 16 per cent jump in profit in the first quarter after net income rose to a record $1.2bn.
It also reported revenue of $4.4bn, beating analysts’ prediction of $4.31bn.
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