BlackRock has become the latest U.S. financial firm to receive approval for setting up a majority-owned joint venture (JV) in China. The China Banking and Insurance Regulatory Commission approved a wealth management JV among BlackRock, Singapore state investor Temasek Holdings Pte Ltd and China Construction Bank Corp. on Saturday.
BlackRock already manages assets of a lot of high-net-worth clients in China. Thus, this is expected to further bolster its presence in the country. In a statement, the company mentioned, “This partnership is consistent with the U.S.-China efforts to open the Chinese market to US financial services firms.”
China continues to be one of the company’s top regions for growth. As the country is further opening up the financial sector for foreign companies, BlackRock wants to take advantage of this and expand therein. It has also applied for a fund management license to set up its wholly-owned mutual fund in the country.
Over the past few years, the company has made several strategic acquisitions — domestic and overseas — that have aided top-line growth. Moreover, its strong global presence, broad product diversification, revenue mix and steadily improving assets under management are expected to aid revenues.
In addition to BlackRock, various other global finance companies are seeking to expand operations in China as the country removes foreign ownership limits on financial firms. Some of the firms already taking advantage of the available options include Vanguard Group Inc., JPMorgan JPM, Goldman Sachs GS, UBS Group, HSBC Holdings and Morgan Stanley MS.
BlackRock has become the latest U.S. financial firm to receive approval for setting up a majority-owned joint venture (JV) in China. The China Banking and Insurance Regulatory Commission approved a wealth management JV among BlackRock, Singapore state investor Temasek Holdings Pte Ltd and China Construction Bank Corp. on Saturday.
