BlackRock is stepping up its efforts to build an onshore presence in China, as part of its goal to become a major foreign player in the country.
In a letter to shareholders, chief executive Laurence Fink said China offers one of the largest future growth opportunities for the company.
He said Asia is expected to drive 50% of the organic assets under management growth in the asset management industry over the next five years, and this is largely driven by China.
Last year has been a difficult year for the overall asset management industry, owing to the evolving regulatory environment and global business models.
Fink said BlackRock’s future growth will ultimately be driven by making investing more accessible to wider range of investors, and its strategy is focused on targeting areas with the highest future growth potential.
This includes China, where there is increasing demand for more diversified and long-term investment solutions.
BlackRock launched its first onshore equity fund targeting qualified institutional and high-net-worth investors in China in June 2018.
Its wholly foreign-owned enterprise in China – BlackRock Investment Management (Shanghai) – was registered with the Asset Management Association of China as a private fund management (PFM) company in December 2017.
According to the Financial Times, BlackRock has held talks with various Chinese groups, including CICC Fund Management to buy majority stake in the investment unit.
BlackRock’s future growth will ultimately be driven by making investing more accessible to wider range of investors, and its strategy is focused on targeting areas with the highest future growth potential
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As of end-December 2018, about 7% of BlackRock’s total assets under management of $5.98 trillion were derived from the Asia Pacific region.