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Soros says BlackRock's China investments likely to lose money – WSJ

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(Reuters) – Billionaire investor George Soros said BlackRock Inc investing billions of dollars into China now is a “mistake” and will likely lose money for the asset manager’s clients, according to an opinion piece in the Wall Street Journal.

© Reuters/Lisi Niesner FILE PHOTO: Billionaire investor George Soros is awarded the Schumpeter Prize in Vienna

“Pouring billions of dollars into China now is a tragic mistake,” Soros wrote in the op-ed. “It is likely to lose money for BlackRock’s clients and, more important, will damage the national security interests of the U.S. and other democracies.”

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Last month, BlackRock became the first foreign asset manager to operate a wholly owned mutual fund business in China, tapping the fast-growing $3.6 trillion retail fund market. This also comes after the government scrapped a foreign ownership cap in the industry on April 1, 2020.

Soros said BlackRock has drawn a distinction between the country’s state-owned enterprises and privately owned companies that is far from reality, according to the opinion piece https://www.wsj.com/articles/blackrock-larry-fink-china-hkex-sse-authoritarianism-xi-jinping-term-limits-human-rights-ant-didi-global-national-security-11630938728.

BlackRock did not immediately respond to a Reuters request for comment.

Investors in China have been rattled by a flurry of regulatory crackdowns this year targeting sectors ranging from technology to private tutoring, which have wiped out close to $1 trillion in market value since February.

(Reporting by Aakriti Bhalla in Bengaluru; Editing by Shounak Dasgupta and Kim Coghill)