BlackRock Inc (BLK.
The US fund giant said on Wednesday that its wealth management company with a unit of China Construction Bank Corp (CCB) (601939.SS) and Singaporean public investor Temasek Holdings (Pte) Ltd (TEM.UL) could now start its activities.
The company, 50.1% owned by BlackRock and 40% owned by CCB’s wealth management unit, will draw on BlackRock’s investment expertise and CCB’s extensive distribution network, the company said. American company in a statement.
BlackRock “will support China in building a sustainable ecosystem for investment,” Chairman and CEO Laurence Fink said in the statement.
“The Chinese market represents a significant opportunity to help achieve the long-term goals of investors in China and internationally.”
China opened up its massive financial sector last April as part of a China-US interim trade deal.
Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said in March that Chinese regulators want more foreign entry into China’s financial sector, including wealth management.
Amundi (AMUN.PA) has established a wealth management joint venture with Bank of China (601988.SS), and Schroders has requested a partnership with Bank of Communications (BOCOM) in wealth management.
BlackRock CCB Wealth Management Ltd, which has been licensed by CBIRC, will expand BlackRock’s presence in China.
BlackRock already owns a mutual fund business with Bank of China and is setting up a wholly owned mutual fund company in the country.
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