The China Securities Regulatory Commission (CSRC) has given Blackrock the go-ahead to begin operating as a fund management company (FMC), according to a statement by the firm on Friday.
Blackrock applied for the licence on 1 April 2020, the first day allowed by the Chinese authorities.
The CSRC gave Blackrock initial approval shortly afterwards, but the firm had to de-register its private fund management (PFM) unit — which it did in March 2021 — as it prepared to receive the FMC licence.
The final approval this week enables Blackrock to offer domestic Chinese investors onshore investment products and comes one month after it was allowed to pursue a joint venture asset management business.
In May, Blackrock CCB Wealth Management was approved by a different regulator, the China Banking and Insurance Regulatory Commission, to start its asset management business in China, almost nine months after receiving the go-ahead to set up the venture.
The company is 50.1% owned by Blackrock, 40% by CCB Wealth Management — a wholly owned wealth management subsidiary of CCB – and 9.9% by Temasek, the Singapore sovereign wealth fund.
Together, these two regulatory approvals position Blackrock to extend the breadth of its products and services to all client segments across China, according to the firm.
“Rapid economic development and wealth accumulation in the world’s second largest economy have propelled growth of the domestic asset management industry,” said Susan Chan, Blackrock’s head of Asia.
“Our view at Blackrock has always been that we need to be immersed in local markets around the world…[and] this is what we will do in China as we continue to invest in our local presence and expertise,” added Tony Chang, the firm’s head of China.
