BlackRock raises US$1 billion for the first foreign-funded Chinese mutual fund


BlackRock Company Update

BlackRock has raised 6.7 billion yuan (US$1 billion) for its first mutual fund in China, and the world’s largest asset management company continues to expand into China’s lucrative savings market despite political climate concerns.

This American company became The first global group A Chinese wholly-owned mutual fund business approved in June stated that it completed financing a week earlier than expected and attracted more than 110,000 investors.

BlackRock’s move is part of the broader drive of international finance to China’s rapidly growing US$19 trillion asset management market, even in the face of the rising asset management market Geopolitical tension With the United States.

But its latest news comes after the recent dramatic shift in Beijing’s tone, and the government of Chinese President Xi Jinping is seeking Strengthen the CCP’s control From technology to education industry, and launched a “Common prosperity“The motivation to redistribute wealth.

Regulatory crackdown Didi Chuxing A few days after the ride-hailing company conducted a $4.4 billion initial public offering in New York, its shares in July were hit, and for-profit coaching was banned Erased billions The value of a Chinese education group listed in the United States.

The news of BlackRock’s completion of the fundraising came a day after the billionaire financier George Soros (George Soros). wrote The Wall Street Journal said that the entry of asset management companies into China was a “tragic mistake.”

Soros specifically mentioned the launch of his mutual fund business and warned that the “shared prosperity” plan “would not bode well for foreign investors.”

“Xi Jinping views all Chinese companies as tools of a one-party state,” Soros wrote in a statement. “Financial Times” column Last week, it warned that Chinese investors would face a “sudden awakening.”

Rachel Lord appointment The head of BlackRock’s Asia Pacific region this year will oversee the company’s expansion in China. He said in a statement that the asset management company “is very pleased to contribute our investment and risk management expertise to help Chinese investors more easily and more easily. Affordable investment”.

Social and commercial restrictions recently implemented in China, including Electronic games, Coincides with the long-term liberalization of the country’s financial system, which is reflected in Beijing’s willingness to allow foreign companies to fully own mutual fund operations. In the past, asset management companies were forced to work with local joint venture partners.

Regulatory intervention has Raise concerns about listing The number of Chinese companies operating through depositary receipts in the United States. Due to changes in the way the MSCI index is included in China’s e-commerce group, most of BlackRock’s US$19 billion in American depositary receipts of Alibaba in June were converted to its Hong Kong stocks.

In addition to the mutual fund business, BlackRock received majority equity approval in May Wealth Management Business Cooperation with China Construction Bank and Singapore National Fund Temasek.

Goldman Sachs Unveil In the same month, it established a joint venture with Bank of China and Industrial and Commercial Bank of China in the field of wealth management. Foreign participants were seen as a way to raise standards.

When BlackRock announced the launch of a mutual fund for domestic investors in August, it said that it would “see long-term capital appreciation by adopting a total return strategy using long-term investment methods and backed by in-depth research on individuals.” Inventory and strict risk management control”.

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