BlackRock Gets Approval to Start Wealth Management Business in China
By Yifan Wang
BlackRock Inc. has gotten the go-ahead from Chinese regulators
to start a wealth management business in the country, joining a
host of international financial institutions expanding into China's
fast-growing financial market.
The world's largest money manager said Wednesday that it has
received approval from the China Banking and Insurance Regulatory
Commission to begin asset management operations in China.
The business will be carried out through a joint venture that
will be 50.1% owned by BlackRock. China Construction Bank Corp.
will have a 40% stake while Singapore state investment firm Temasek
Holdings will own the remaining 9.9%.
BlackRock has been making inroads into China's massive financial
industry, as Beijing opens up the sector to American companies as a
major compromise of the U.S.-China trade deal. Last year, the
company was given the green light to set up a wholly owned
mutual-fund business in Shanghai, and it became one of the first
foreign investment firms to start managing money for China's vast
pool of individual investors.
Major U.S. banks have rushed to capture opportunities in China
as well. Citigroup Inc. last month pushed to set up a new
investment bank in China, while Goldman Sachs Group Inc. has
applied for full control of its local securities unit. JPMorgan
Chase & Co. operates a fully controlled futures business in the
country and is awaiting approval to take 100% ownership of its
local asset management venture.
"The Chinese market represents a significant opportunity to help
meet the long-term goals of investors in China and
internationally," said BlackRock Chairman and Chief Executive
Laurence D. Fink.
Write to Yifan Wang at email@example.com
(END) Dow Jones Newswires
May 12, 2021 07:10 ET (11:10 GMT)
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