Article Hero

The Chinese banking sector welcomes BlackRock

1598883545.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
BlackRock gets the CSRC approval to set up a mutual fund

While the tensions between the US and China are still simmering over #TikTok, the security law imposed over Hong Kong, and companies that are said to be involved in the violation of human rights, the banking sector is cozying up in mainland China.

BlackRock, the largest investment management company based on assets, is now the first asset manager to receive approval to set up a mutual fund unit in China. It marks the entry of an American asset manager in a sector worth more than $2.58 trillion.

The China Securities Regulatory Commission (CSRC) green-lighted BlackRock to set up a subsidiary in Shanghai. CSRC stipulated in its statement that BlackRock has six months to set-up its unit. BlackRock, which already has a mutual fund venture with Bank of China, will secure its position in the Chinese fast-growing #asset management market. 

This became possible under the trade deal signed by China and the US at the beginning of the year. BlackRock’s move has been followed suit by Neuberger Berman, Fidelity International, and Schroders. 

Shanghai seems to be the city of choice when establishing new units; the Vanguard Group has announced that it will relocate its Asian headquarters in the town of magnolias upon closure of its Japan and Hong Kong operations.

Currently, BlackRock stock price is trading 0.12% higher. 

Read more about BlackRock here!

Sources: reuters.com, cnbc.com 


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.