US-based heavyweight asset manager BlackRock’s Shanghai arm has bagged a private fund management (PFM) registration in China which will now allow it to sell onshore investment products to Chinese institutional and high net worth investors.
The global investor’s wholly foreign-owned enterprise in Shanghai, BlackRock Investment Management (Shanghai) Co Ltd registered with Asset Management Association of China (AMAC), a statement said last week.
BlackRock’s entry into China’s private fund management segment follows a continuing trend where large investors like UBS, Fidelity International and Fullerton Fund Management secured access to the market for their China units.
“China is one of the most promising investment markets globally, and is a key component to BlackRock’s global strategy. The PFM registration is a significant milestone for BlackRock as we serve our fiduciary duty to deliver the best investment opportunities for our global and local clients,” said Ryan Stork, Chairman, Asia Pacific.
Having a presence in China for both onshore and offshore through various investment programs, BlackRock’s onshore China investment quotas under Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) schemes currently amount to approximately $9.5 billion as of November 2017.
Additional access to the China capital markets includes its participation in the Stock Connect programs, as well as the launch of two Qualified Domestic Limited Partnership (QDLP) products for Chinese high net worth investors.
With its global investments, the firm manages approximately $5.977 trillion in assets.