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BlackRock, Temasek wealth management joint venture wins licence in China
- BlackRock the latest foreign firm to seek to increase its presence in China
- Financial services companies are are expanding their wealth management operations in China to capture rising incomes
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BlackRock, the world’s biggest asset manager, said its majority-owned wealth management joint venture in China has won approval to start operating in the mainland, joining a growing band of financial service providers seeking to tap into rising incomes in the world’s second-largest economy.
The China Banking and Insurance Regulatory Commission granted an asset management licence to BlackRock CCB Wealth Management, BlackRock said Wednesday. The joint venture is 50.1 per cent owned by BlackRock, 40 per cent by a subsidiary of China Construction Bank and Singapore’s sovereign wealth fund Temasek owns 9.9 per cent.
“The Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally,” Laurence Fink, BlackRock’s chairman and CEO said in a statement. “We are committed to investing in China to offer domestic assets for domestic investors and look forward to creating a better financial future for more people.”
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China minted more dollar-denominated billionaires last year than anywhere else in the world and became the first country globally to have more than 1,000 tycoons with fortunes worth more than US$1 billion, according to the Hurun Global Rich List 2021.
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BlackRock’s licence approval comes as a host of foreign lenders, asset managers and insurers make bigger bets this year on future economic growth – and rising affluence – in mainland China. They are gaining access to the market as Beijing further opens up its financial sector.
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Citigroup, which has had a presence in the mainland since 1902, is seeking a licence later this year to open a new wholly-owned domestic securities business in the mainland after it was granted a domestic fund custody licence in September.
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