(Bloomberg) — BlackRock Inc. and Singapore’s Temasek Holdings Pte received approval to jointly build an asset-management business in China with one its biggest banks, bolstering the U.S. company’s expansion in the nation.
BlackRock said that it, along with, state investor Temasek and China Construction Bank Corp. received the go-ahead from the China Banking and Insurance Regulatory Commission.
“This partnership is consistent with the U.S.-China efforts to open the Chinese market to US financial services firms,” BlackRock, the world’s largest asset manager, said in an emailed statement on Saturday.
BlackRock joins the world’s largest asset managers and investment banks like JPMorgan Chase & Co in expanding in the Asian nation. While the further liberalization of the sector in China has been overshadowed by the virus crisis, companies are still pursuing plans for a market in which the value of retail funds alone could reach $3.4 trillion in three years.
Read more about China’s asset management industry’s big opening up
BlackRock Chief Executive Officer Larry Fink said China remains one of the firm’s top regions for growth despite uncertainties brought on by tensions with the U.S. and the virus. Even with current trade tensions, China will continue to attract global investments, especially in Shanghai, as more investors seek exposure to onshore assets, Fink said in June.
With more than $7 trillion assets under management, BlackRock is attempting to crack the China market in multiple ways. Led in the region by Geraldine Buckingham in Hong Kong, the company is also applying for licenses to set up wholly-owned mutual fund firms in China, people familiar have said. That’s in addition to holding a 16.5% stake in a joint venture with Bank of China Ltd.
Amundi SA, Europe’s largest asset-management company, was the first foreign firm to receive approval when its wealth-management venture with Bank of China’s BOC Wealth Management got the nod from the regulator in December.
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