By Yifan Wang
BlackRock Inc. has obtained regulatory approval in China to become one of the first foreign-investment firms to start its wholly-owned mutual fund business in the country, the latest development in its ambitious plan to expand in China's booming financial industry.
The China Securities Regulatory Commission granted approval for BlackRock Fund Management Co., Ltd. to begin operations as a fund management company, the company said Friday. The approval came after BlackRock was given the green light to set up the company in August 2020.
The latest go-ahead from authorities will allow BlackRock to offer onshore investment products to a massive pool of individual Chinese investors, after being long barred from accessing the vast market independently.
BlackRock, together with a host of U.S. financial institutions, have been increasingly making inroads into China as Beijing opened up its financial market as a major compromise of the U.S.-China phase-one trade deal. In May, BlackRock was granted approval to begin operations of a joint venture asset management business.
"China is taking significant steps in opening up its financial markets," said Larry Fink, BlackRock's Chairman and Chief Executive Officer. "We look forward to sharing our global investment expertise and offering more differentiated investment solutions to Chinese investors."
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(END) Dow Jones Newswires