BlackRock, the world’s largest asset manager, on Friday disclosed that it had been granted approval from Chinese financial regulators to begin a wholly-owned onshore mutual fund business in the world’s second-largest economy.
The company said in a statement that China’s Securities Regulatory Commission had granted it approval to commence operations.
In a report credited to Bloomberg news, the approval comes after the company was given the nod to pursue a joint venture asset management business along with Singapore’s Temasek and China Construction Bank Corp.
“China is taking significant steps in opening up its financial markets,” Chief Executive Officer, Larry Fink said in the statement. “We can support more Chinese investors access financial markets and build portfolios that can serve them throughout their lives.”
The asset management company known for its financial clout on global financial markets astonished a number of investors when it revealed it was not really a big company.
In its most recent presentation to investors, the New York-based financial giant revealed that the $9 trillion it had as revenue comprised of just 3% of the industry’s, a smaller proportion compared to the very top players in other sectors.
This is coming on the backdrop that suggests BlackRock’s scale pose a systemic risk to the United States financial ecosystem. U.S. Senator Elizabeth Warren, a highly revered law professor some months ago questioned Treasury Secretary Janet Yellen about whether she would request that financial regulators consider labelling BlackRock a systemically important financial brand or one deemed too big to fail.
The financial juggernaut known for managing about $279 billion in alternative assets, further disclosed its portfolio advisory arm is moving away from the customary model of a 60% equity, 40% fixed income disintegration in portfolios in favour of a 50% public equity, 30% bonds and 20% private markets rupture.
