Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

BlackRock Gets Nod to Set Up Mutual Fund Business in China (Revised)

By Zacks Investment ResearchStock MarketsSep 02, 2020 05:41AM ET
www.investing.com/analysis/blackrock-gets-nod-to-set-up-mutual-fund-business-in-china-revised-200536104
BlackRock Gets Nod to Set Up Mutual Fund Business in China (Revised)
By Zacks Investment Research   |  Sep 02, 2020 05:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

BlackRock (NYSE:BLK)’s BLK efforts to expand operations in attractive China-based markets have started bearing fruits. The company has received approval from the China Securities Regulatory Commission to set up a mutual fund unit in the country.

Thus, BlackRock has become the first global asset manager to get consent to kick start operations in China. The company has six months to establish a wholly-owned subsidiary in Shanghai, which will have registered capital of CNY 300 million ($43.7 million).

BlackRock already has a mutual fund joint venture (JV) with Bank of China. Nonetheless, with the current development, the company will be able to offer differentiated solutions to investors in China, in addition to managing and selling mutual funds in the mainland.

This development comes on the heels of the company getting regulatory nod to form a majority-owned wealth management JV in China. The Chinese Banking and Insurance Regulatory Commission approved a wealth management JV among BlackRock, Singapore state investor Temasek Holdings Pte Ltd and China Construction Bank (OTC:CICHF) Corp. last week.

China continues to be one of the company’s top regions for growth. As the country is further opening up the financial sector for foreign companies, BlackRock wants to take advantage of this and expand therein.

BlackRock CEO Larry Fink, in his annual letter to shareholders, stated, “I continue to firmly believe China will be one of the biggest opportunities for BlackRock over the long term, both for asset managers and investors, despite the uncertainty and decoupling of global systems we’re seeing today.”

Over the past few years, the company has made several strategic acquisitions — domestic and overseas — that have aided top-line growth. Moreover, its strong global presence, broad product diversification, revenue mix and steadily improving assets under management are expected to aid revenues.

In addition to BlackRock, various other global finance companies are seeking to expand operations in China as the country is removing foreign ownership limits on financial firms. Some of the firms already taking advantage of the available options therein include Vanguard Group Inc., JPMorgan JPM, Goldman Sachs GS, UBS Group, HSBC Holdings (NYSE:HSBC) and Morgan Stanley (NYSE:MS) MS.

Shares of BlackRock have gained 23.6% over the past six months, significantly outperforming 4.2% rise recorded by the industry.


Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

(We are reissuing this article to correct a mistake. The original article, issued on August 31, 2020, should no longer be relied upon.)


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

JPMorgan Chase Co. (NYSE:JPM): Free Stock Analysis Report

The Goldman Sachs Group, Inc. (NYSE:GS): Free Stock Analysis Report

Morgan Stanley (MS): Free Stock Analysis Report

BlackRock, Inc. (BLK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research
BlackRock Gets Nod to Set Up Mutual Fund Business in China (Revised)
 

Related Articles

Chris Kimble
Is It Game Over For Growth Stocks? By Chris Kimble - May 11, 2021

One of the most exciting and relentless investing trends of the past 4 years is the strength in growth stocks versus value stocks. But that trend is in jeopardy… and may be...

BlackRock Gets Nod to Set Up Mutual Fund Business in China (Revised)

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email